Answer the question a)GOT7 Soda Pop, Inc., has a new fruits drink. The production planner hasassembled the following cost data and demand forecast as follow:Table 1: Cost and demand forecastQuarter DemandFirst1,800Second 1,200Third1,600Fourth 1,300b)Previous quater's outputBeginning inventoryStockout costInventory holding costHiring employeesTerminating employeesSubcontracting costUnit cost on regular timeOvertime cost1,300 cases0 casesRM150RM40 per case at the end of quaterRM40 per caseRM80 per caseYou as the production planner need to develop an aggregate planning. You are requiredto:RM60 per caseRM30 per caseRM15 extra per casei) Assess plan A: strategy that hires and fires employees to meet the forecasteddemand.ii) Compare which strategy is better.i) Assess plan B: strategy that produces 1,200 cases per quarter and meets theforecasted demand with inventory and subcontracting.Explain the relationships between Lean Operations and Just-in-Time (JIT)systems.

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Answered: GOT7 Soda Pop, Inc., has a new fruits…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Determine the total cost for this plan given the following forecast:Month 1 2 3 4 5 6Forecast 380 400 420 440 460 480Use steady regular output of 400 units per month, use overtime as needed for up to 40 units permonth, and use subcontracting to make up any needed output to match the forecast. Unit costs are:Regular output = $25Overtime = $40Subcontract = $60Average Balance Inventory = $15
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The ABC Company is making a production plan for the next year, given the sales forecast for the next year as: Quarter 1 2 3 4 Total Sales Forecast (units) 9,000 12,000 16,000 12,000 49,000 Currently, the ﬁrm has 12 employees, each producing up to 1,000 units per quarter and earning $2,000 per quarter. The ﬁrm estimates its inventory carrying cost to be $2 per unit of ending inventory per quarter and its hiring or layoff costs to be $1,600 per employee. The company currently has an inventory of 2,000 units and wishes to have an ending inventory of at least 1,000 units at the end of each quarter. The company does not plan to incur inventory shortages. Find the optimal production plan that minimizes the total cost by Excel solver
The company Customer First A-to-Z uses a make to stock strategy. Product A is thecompany’s main product. The forecast for Product A, the accepted customer ordersand the master production schedule is shown below. The company presently has150 units on hand and a fixed master production schedule quantity of 80 units isused. Product A Forecast Customer Orders MPS Week Quantity Week Quantity Week Quantity 1 60 1 45 1 2 60 2 66 2 80 3 60 3 55 3 4 60 4 65 4 5 60 5 40 5 6 60 6 22 6 7 60 7 10 7 8 60 8 5 8 9 60 9 4 9 10 60 10 2 10 Required:A. Help the master production scheduler to fill in the master schedule calculationtable shown below, by using the forecast, the customer orders and the plannedproduction of product A. 1 2 3 4 5 6 7 8 9 10 Ft Dt EIt-1 Pt EIt ATPt B. The marketing department has accepted an…
Cotton Island Fashions, a clothing producer, has generated a forecast for the next eightweeks. Demand is expected to be fairly steady, except for periods 3 and 4, which havehigher demands.Month 1 2 3 4 5 6 7 8 TotalForecast 1200 1200 1400 3000 1200 1200 1200 1200 11600The company typically hires seasonal workers to handle the extra workload in periods 3and 4. The cost for hiring and training a seasonal worker is $50 per worker, and thecompany plans to hire two additional workers and train them in period 3, for work in period4, and then lay them off (no cost for layoff). Develop an aggregate plan that uses steadyoutput from regular workers with added output from the two seasonal workers in period 4.The output rate for the seasonal workers is slightly less than that of regular workers, sotheir cost per unit is higher. The cost per unit for regular workers is $4 per unit, while costper unit for the seasonal workers is $5 per unit. Backlog cost is $1 per unit per period.
The Yeasty Brewing Company Produces a popular local beer known as Iron Stomach. Beer sales are somewhat seasonal, and Yeasty is planning its production and workforce levels on March 31 for the next six months. The demand forecasts are as follows: month production days demand(in hundred of cases) April 14 75 May 20 100 June 24 200 July 26 140 August 20 100 September 18 50 As of March 31, Yeasty had 70 workers on the payroll. Over a period of 20 working days when there are 100 workers on the pay roll, Yeasty produced 10,000 cases of beer. The cost to hire each worker is $200 and the cost of laying off each worker is $400. Holding costs amount to 1 dollar per case per month. As of March 31, Yeasty expects to have 3,000 cases of beer in stock. It plans to start October with 3,500 cases on hand. a) Formulate the problem of planning Yeasty’s production levels as a linear program. b) Use Excel solver to solve the problem and give the solution (decision variables and…
Pls do fast and i will give like for sure Solution must be in typed form If next years total sales are forecasted to be 4536 and the cyclical index for the busiest month was 1.77, what would the forecasted demand be for that busiest month? a. 703 b. 7982 c. 669 d. 378
Product A is an assemble-to-order product. It has a lot size of 150, and currentlyhas an on-hand inventory of 110 units. There is a 2-week demand time fence and a12-week planning time fence. The following table gives the original forecast and theactual customer orders for the next 12 weeks:Week 1 2 3 4 5 6 7 8 9 10 11 12Forecast 80 80 80 70 70 70 70 70 70 70 70 70Demand 83 78 65 61 49 51 34 17 11 7 0 0a. Given this information, develop a realistic master schedule, complete with ATPlogic.b. Tell how you would respond to each of the following customer order requests.Assume these are independent requests, and do not have cumulative effects.■ 20 units in week 3■ 40 units in week 5■ 120 units in week 7

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