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Managerial Economics 2nd Edition by William Boyes
Edition 2ISBN: 978-0618988624Managerial Economics 2nd Edition by William Boyes
Edition 2ISBN: 978-0618988624 Exercise 2
Free Capital
The following statements were taken from annual reports listed on the Internet.
Flynt Fabrics, Inc. was losing money due to its high inventory levels and long lead times. An internal analysis found that Flynt Fabrics' actual production time was about two days but the company carried 19 days worth of inventories. The executives knew that if the company could deliver products very rapidly with lower inventories, the company's competitive position would improve.
By integrating edge routing, ethernet aggregation, and subscriber management into a single, scalable platform, the SmartEdge Multi-Service Edge Router (MSER) allows service providers to deliver video, voice, and data services on a single, converged broadband network. The innovative, purpose-built Smart- Edge platform also reduces capital and operational expenses by reducing the number of network elements and simplifying the network architecture.2 Yankee Group analyzed the total cost of ownership of building a multi-play network and uncovered that integrating edge routing, ethernet aggregation, and subscriber management yields measurable TCO advantages. The highlights of the study are:
Total TCO Advantage: 22%
Capital Expenditure: 20.9%
Operational Expenditure: 52.6%
Level 5 Networks invented EtherFabric, a complete solution of software, specialized silicon and high performance NIC hardware that allows Ethernet Networks to be used as high-performance server interconnects that are futureproof even as performance requirements continue to increase. According to the company, EtherFabric is the only Ethernet-based, performance-enhanced interconnect that maintains 100% binary compatibility with existing standards, while providing easy scalability to 10Gb/sec and beyond. One of the important characteristics of EtherFabric, according to the following is the reduced capital expenditures.
Reduced Capital and Operational Expense -Along with full backward compatibility with existing standards, which dramatically decreases deployment costs, EtherFabric reduces the number of servers required by up to 50 percent. This reduction is a direct result of EtherFabric requiring less computing resources from the host server CPU to transfer network data, while also enabling the communication between servers to occur both more quickly and at higher speeds.
Why are these firms focused on reducing capital?
The following statements were taken from annual reports listed on the Internet.
Flynt Fabrics, Inc. was losing money due to its high inventory levels and long lead times. An internal analysis found that Flynt Fabrics' actual production time was about two days but the company carried 19 days worth of inventories. The executives knew that if the company could deliver products very rapidly with lower inventories, the company's competitive position would improve.
By integrating edge routing, ethernet aggregation, and subscriber management into a single, scalable platform, the SmartEdge Multi-Service Edge Router (MSER) allows service providers to deliver video, voice, and data services on a single, converged broadband network. The innovative, purpose-built Smart- Edge platform also reduces capital and operational expenses by reducing the number of network elements and simplifying the network architecture.2 Yankee Group analyzed the total cost of ownership of building a multi-play network and uncovered that integrating edge routing, ethernet aggregation, and subscriber management yields measurable TCO advantages. The highlights of the study are:
Total TCO Advantage: 22%
Capital Expenditure: 20.9%
Operational Expenditure: 52.6%
Level 5 Networks invented EtherFabric, a complete solution of software, specialized silicon and high performance NIC hardware that allows Ethernet Networks to be used as high-performance server interconnects that are futureproof even as performance requirements continue to increase. According to the company, EtherFabric is the only Ethernet-based, performance-enhanced interconnect that maintains 100% binary compatibility with existing standards, while providing easy scalability to 10Gb/sec and beyond. One of the important characteristics of EtherFabric, according to the following is the reduced capital expenditures.
Reduced Capital and Operational Expense -Along with full backward compatibility with existing standards, which dramatically decreases deployment costs, EtherFabric reduces the number of servers required by up to 50 percent. This reduction is a direct result of EtherFabric requiring less computing resources from the host server CPU to transfer network data, while also enabling the communication between servers to occur both more quickly and at higher speeds.
Why are these firms focused on reducing capital?
Explanation
Verified
Verified
Case summary:
According to the annual r...
Managerial Economics 2nd Edition by William Boyes
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