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Memorandum

Date: October 16, 2015


To: Mr. Kubler
From: Lisa Mondragon, Production/Shipping
Subject:
Our company spends a lot of money on supplies, but takes awhile delivering
products. Because of the high costs of our supplies, we dont have many
workers to complete the job. In our previous situation, many workers called
out sick. Therefore, we didnt have any workers to cover shifts because we
had just enough workers rather than having extra. In situations like that our
company suffers and fails to do our job. Our company uses brand name
supplies, that do equal job as those such as off brand.

Supply Costs (name brand) & Employee Wage:


Name brand supplies (Total):
$2,612
Employee wage (warehouse crew members): $25,600
$28,212
I have done some research and estimated the employee wages, as well as
the cost of our name brand supplies. Our company pays almost $30,000 for
name brand supplies and employee wages. The way the companys money is
going right now, is costly and it does not satisfy our problem, time. It is the
same quality work, for cheaper and a shorter time. I know about the
shortage of workers and supplies.

Supply Costs (off brand) & Employee Wage:


Off brand supplies (total):
$1,000
Employee Wage (warehouse crew members): $27,212
$28,212
As you can see, in the second figure, the company would be spending the
same amount of money but it would be bitterly distributed. The company
would be spending less on supplies but receiving the same amount, and
paying more for employees, so the job can be accomplished more quickly.
Essentially theyre the same amount but we will have more employees. This
helps the company solve the situation of not having enough employees and
getting shipments out late.

Please email me at lisa.mondragon.290@my.csun.edu or call me at 5551234. This would help the company save customers rather than lose them.
If this idea goes through, then we can start working with finance and make
the transition as soon as possible. Fast action will help us reach this ideal
quicker.

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