Crazy Cab is a small taxi cab company operating in a large metropolitan area. The company operates 20 cabs. Each cab is worth about S20k. The metropolitan area also requires that each cab carry a medallion (a type of license). Medallions are currently traded at S50k. Cab drivers make $8 per hour and are available for every time of the day. The average cab is used for 40 trips per day. The average trip is three miles in length. Passengers have to pay $2 as a fixed fee and $2 per mile they are transported. If the cab picks up a passenger (as opposed to being flagged on the street), there is no extra fee. Fuel and other costs, such as maintenance, are SO.20 per mile. The cab drives about 40 percent of the distance without a paying passenger in it (e. g. returning from a drop-off location, picking up a passenger, etc.)

a. Draw an ROIC tree for the cab company.
b. Populate the tree with numbers. Make assumptions to explore operational variables in as much detail as possible (e. g., assumptions about gas prices, gas consumption, etc.).
c. Which of the variables would you classify as operational value drivers?
d. Analyze the labor efficiency and the efficiency of using the fleet of cabs using productivity ratios.

The amberssen specialty company is a chain of twelve retail stores that sell a variety of imported gift items, gourmet chocolates, cheeses, and wines in the toronto area. amberssen has an is staff of three people who have created a simple but effective information system of networked point-of-sale registers at the stores and a centralized accounting system at the company head- quarters. harry hilman, the head of amberssens is group, has just received the following memo from bill amberssen, sales director (and son of amberssen’s founder). harry—it’s time amberssen specialty launched itself on the internet. many of our competitors are already there, selling to customers without the expense of a retail storefront, and we should be there too. i project that we could double or triple our annual revenues by selling our products on the internet. i’d like to have this ready by - giving, in time for the prime holiday gift-shopping season. bill after pondering this memo for several days, harry scheduled a meeting with bill so that he could clarify bill’s vision of this venture. using the standard con- tent of a system request as your guide, prepare a list of questions that harry needs to have answered about this project.

Which critical success factor improves with reduced cycle time, better quality standards, and improved efficiency when an is is implemented?

Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks