Superior Grain Inc Essay Example | Topics and Well Written Essays - 2000 words

Superior Grain Inc - Essay Example describe the assumptions and methods used (3 pts) Somewhat describes assumptions and methods used (7 pts) Substantially describes assumptions and methods used (8 pts) Effectively describes assumptions and methods used (10 pts) Calculate statistics using a spreadsheet Does not calculate appropriate statistics using a spreadsheet and/or does not provide evidence of calculations (0 pt) Calculates appropriate statistics using a spreadsheet (most answers are not correct) (13 pts) Calculates appropriate statistics using a spreadsheet (not all answers are correct) (21 pts) Calculates appropriate statistics using a spreadsheet (most answers are correct) (25 pts) Effectively calculates statistics using a spreadsheet (almost all answers are correct) (30 pts) Explain implications of output of statistical analysis Does not explain implications of output of statistical analysis (0 pt) Partially explains implications of output of statistical analysis (3pts) Somewhat explains implications of output of statistical analysis (7 pts) Substantially explains implications of output of statistical analysis (8 pts) Effectively explains implications of output of statistical analysis (10 pts) . . . continued . . . TITLE OF RUBRIC: Case Analysis, cont. (Page 2 of 2) Course: QNT 5040 LEARNING OUTCOME/S: (see syllabus) Date: 02.15. 2013 PURPOSE: To facilitate effective decision making under uncertain conditions by quantifying risk. Name of Student: Kelly Espinosa, Diana De Castro, Elsa Santos, Marie Jean, Lesan Thomas, Courtney Waite VALIDITY: Best practices in Monte Carlo simulation. Name of Faculty: Nova Southeastern University COMPANION DOCUMENTS: Assignment and format instructions, Case Earning maximum points in each box in ‘PROFICIENT’ column and / or points in columns to the right of... Based on the analysis of the historical data and projected data for the upcoming year, it would be a mistake for Superior Grain to rely on the volume of shipments allotted from the Polish contract to cover the costs of building the third wharf with the expectation of 20% profit. It is apparent from the statistics that the addition of the third wharf would decrease the demurrage charge; however, there is a negative net present value (NPV) that indicates the company should not build the third wharf. Even though, there is a negative NPV for the company, according to our five-year analysis, Superior Grain Elevator could still consider building the third wharf. Because of the 3 factors detailed below, Superior Grain Manager, Mike Armstrong, needs to consider building the third wharf. By building the third wharf the waiting time will be dramatically decreased, and customer satisfaction will also increase. After the contract is over the number of ships will go back to 115 with the savings o f more than $100,000 per year. There is always a possibility within the next 2 years for the company to get a new contract which it will be prepared to handle. Therefore by building the third wharf the company will be able to benefit from it.