Advanced Medical Technology Case Study Option
Question - Would you, since Mr. Winter months, recommend that loan to AMT? If therefore , on what basis?
While Mr. Winter months, I would recommend that loan to Advanced Medical Technology Corporation (AMT). There are several main reasons why I would recommend credit to ZUNFT. The biggest aspect is this business is still inside the growth as well as infancy stage of their life pattern. They have spent large amounts of capital in the research and development, and marketing of its products, in fact it is too soon to see the rewards via these assets. Some of the adjustments that need to be produced in order for a loan to be accepted for ZUNFT include bettering
manufacturing efficencies, immediate loans, operations, and handling their accounts recieveables.
The developing operations of AMT may be streamlined that may enable ZUNFT to see better profits. At the moment they are building in 10-12 week whole lot sizes, and they are not always producing the products they require. With the expenditure into a info system, they can streamline this technique. This was installed in 1984, and they are making progress. To obtain the reshuffling a few positions (i. e., MRP, planning, learn data) in order to obtain the total benefit of the info system. They will build greater lot sizes of several products that may cut down on the direct labor costs pertaining to the supplies. Making only the products they will know they may have demand on will lessen the excess and obsolesnce volume they have to hold for each one fourth.
AMT also can improve its accounts receivable days excellent ratio by having more control of it's A/R. Having an individual do background record checks on new clients instead of allowing all new buyers the same thirty days. Some consumers with the history must be given simply no credit, and must shell out COD or before the items are delivered to minimize risk of default. Recognized customers or perhaps customers with great credit rating can be given more than 35...