Slopes & Sleds (S&S) makes skis, snowboards, and high- end sledding equipment. As shown below, the demand for its products is highly seasonal. The company employs 10 workers who can each produce 200 units of various equipment per month. The cost of regular production is $8 per unit, overtime $12, and subcontracting $16. Overtime is limited to regular production each period. Subcontracting is unlimited. Hiring and firing costs are $500 per worker. In- ventory holding costs are $2 per unit per month. Given the estimates of demand below, create an aggregate production plan for Slopes & Sleds using: a. the current workforce level (supplemented with overtime and subcontracting as needed), b. chase demand. Month DemandJanuary 6400February 7000March 1500April 500May 600June 1400July 1600August 2000September 1400October 1500November 5200December 6900

Slopes & Sleds (S&S) makes skis, snowboards, and high- end sledding equipment. As shown below, the demand for its products is highly seasonal. The company employs 10 workers who can each produce 200 units of various equipment per month. The cost of regular production is $8 per unit, overtime $12, and subcontracting $16. Overtime is limited to regular production each period. Subcontracting is unlimited. Hiring and firing costs are $500 per worker. In- ventory holding costs are $2 per unit per month. Given the estimates of demand below, create an aggregate production plan for Slopes & Sleds using: a. the current workforce level (supplemented with overtime and subcontracting as needed), b. chase demand. Month DemandJanuary 6400February 7000March 1500April 500May 600June 1400July 1600August 2000September 1400October 1500November 5200December 6900

Name: Slopes & Sleds (S&S) makes skis, snowboards, and high- end sledding eq
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Description: Slopes & Sleds (S&S) makes skis, snowboards, and high- end sledding equipment. As shown below, the demand for its products is highly seasonal. The company employs 10 workers who can each produce 200 units of various equipment per month. The cost of r

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter6: Target Markets: Segmentation And Evaluation

Section6.1: Family-owned Ski Butternut Targets Family Skiers

Problem 1VC: Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a...

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Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 What role do geographic variables play in Ski Butternuts segmentation and targeting?
Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 How is Ski Butternut applying behavioristic variables in its segmentation strategy? Explain your answer.
Pullman Tire Company would like to plan production for the next three months.The firm can satisfy demand by using inventory, regular production (at $40 per tire), overtime (at $50 per tire), or subcontracting (at $70 per tire). Any tires held over for one month incur a $2 per tire inventory carrying cost. Pullman Tire has sufficient regular production capacity to produce up to 700 tires each month, and it can produce up to 50 more tires each month using overtime. The subcon- tracting availability from an alternative supplier is 150 in January and February and 130 in March. Customers will demand 650 tires in January, 1,000 in Febru- ary, and 890 in March (all demand must be satisfied on time; i.e., no backorders are allowed). The firm begins with 100 tires and wants to have no tires left in inventory at the end of March. Formulate a linear program for this problem, and determine the cheapest tire production plan after solving the problem in Excel. This is the answer but I am unsure how…
I need a detailed assistance to solve this problem in: Operations Analysis. #4) A greengrocer has exactly 1,000 square feet available to display and sells 3 kinds of vegetables. The space consumed by each kind of vegetable is proportional to its cost, and tomatoes consume 0.5 square feet per pound. There is a $100 setup cost for replenishing any of the vegetables, and the interest rate is 25% per annum. The 3 vegetables for sale have the following data: Tomatoes: annual demand is 850 pounds and the cost per pound is $0.29. Lettuce: annual demand is 1280 pounds and the cost per pound is $0.45. Zucchini: annual demand is 630 pounds and the cost per pound is $0.25. a) - What is the optimal quantity for purchasing each vegetable (include all formulas)?
All-Natural Coop makes three breakfast ccrcals, A, B, and C, from four ingredients: rolled oats, raisins, shredded coconuts, and slivered almonds. The daily availabilities of the ingredients are 5 tons, 2 tons, 1 ton, and 1 ton, respectively. The corresponding costs per ton are $100, $120, $110, and $200, respectively. Cereal A is a 50:5:2 mix of oats, raisins, and almond. Cercal B is a 60:2:3 mix of oats, coconut, and almond. Cercal C is a 60:3:4:2 mix of oats, raisins, coconul, and almond. The cercals are prodluced in jumbo 5-lb sizes. All-Natural sells A, B, and Cat $2.00, $2.50, and $3.00 per box, respectively. The minimum daily demand for cereals A. B, and C is 500, 600, and 500 boxes, respectively. Develop an LP model to determine the optimal production mix of the cereals and the associated amounts of ingredients, and find the solution using execl Solver
Maximization of Profit (Graphical Method) The Mariposa Furniture makes two products: tables and chairs, which must be processed through assembly and finishing departments. Assembly department is available for 60 hours in every production period, while the finishing department is available for 48 hours of work. Manufacturing one table requires 4 hours in the assembly and 2 hours in the finishing. Each chair requires 2 hours in the assembly and 4 hours in the finishing. One table contributes P180 to profit, while a chair contributes P100. The problem is to determine the number of tables and chairs to make per production period in order to maximize the profit. What is the profit? Minimization of Profit (Graphical Method) An animal food producer mixes two types of animal food: x and y. each unit of x costs P100 and contains 40 grams of fat, 20 grams of protein and 1,600 calories. Each unit of y cost P80 and contains 60 grams of fat, 60 grams of protein and 1,200 calories. Suppose…
A pet daycare facility offers pet sitting services where owners can drop off their pets for training and socializing with other pets. To feed the pets, the daycare makes two types of pet food. A bag of freeze-dried nuggets costs $7.99 and contains 21 units of proteins, 4 units of fiber, and 15 units of fat. A bag of dehydrated nuggets costs $11.26 and contains 28 units of proteins, 7 units of fiber, and 20 units of fat. The minimum daily requirements are usually 200 units of protein, 75 units of fiber, and 220 units of fat. Formulate the information as an LP problem and answer the following questions. How many bags of freeze-dried nuggets and dehydrated food should the facility make each day to minimize the total cost? What is the lowest cost? Identify the binding and non-binding constraints and report the surplus values.
Smith Smith Products Ltd produces two products, in a process which is partly automated. It is restricted to 400 labour hours and 600 machine hours in the coming week. Information on each product is as follows: Per unit A B £ £ Selling price 50 60 Labour (£10 per hour) 20 30 Material used 8 12 Other variable costs 17 14 Fixed costs 3 1 Machine time taken 4 hours 2 hours Required: Derive the objective function Set out the constraints in a mathematical format Sketch a graph representing the problem; identify the feasible region and the optimal solution before solving algebraically for the optimal production plan.
A carpenter produces chairs, tables, and windows. The following information is provided: Cost of production per unit of chairs, tables, and windows is 2, 4, and 6 respectively, and can be sold at 7, 10, and 12, respectively. Weekly demand on chairs, tables, and windows is expected to not exceed 400, 200, and 100, respectively. Production of the three products requires wood, metal sheets and paint. The following table shows the unit requirement of each of the three materials needed and the availability of each. Chairs Tables Windows Weekly availability Wood 2 3 7 1000 Metal Sheets 1 - 1 400 Paint 3 5 10 2000 Production of tables may not exceed twice the units produced of chairs. Total production budget is expected to be 10,000 Pounds every week. Formulate the linear programming model to determine the number of units to produce of the three products such that the net profit is maximized.
Burroughs Garment Company manufactures men’s shirts and women’s blouses for Walmark Discount Stores. Walmark will accept all production supplied by Burroughs. The production process includes cutting, sewing, and packaging. Burroughs employs 25 workers in the cutting department, 35 in the sewing department, and 5 in the packaging department. The factory works an 8-hour shift, 5 days a week. The following table provides the time requirements and price per unit for the garments. Minutes per unit garment cutting swing packing unit price $ shirts 20 70 12 8 blouses 60 60 4 12
A manufacturing firm has four plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below: Customer (requirement) Factory (capacity) Customer 1 (125) Customer 2 (150) Customer 3 (175) Customer 4 (75) A (100) $ 15 $ 10 $ 20 $ 17 B (75) $ 20 $ 12 $ 19 $ 20 C (100) $ 22 $ 20 $ 25 $ 14 D (250) $ 21 $ 15 $ 28 $ 12 How many supply nodes are present in this problem? Multiple Choice: 4 3 1 8 16
Brady Corporation produces cabinets. Each week, itrequires 90,000 cu ft of processed lumber. The companymay obtain lumber in two ways. First, it may purchaselumber from an outside supplier and then dry it in thesupplier’s kiln. Second, it may chop down logs on its ownland, cut them into lumber at its sawmill, and finally dry thelumber in its own kiln. Brady can purchase grade 1 or grade2 lumber. Grade 1 lumber costs $3 per cu ft and when driedyields 0.7 cu ft of useful lumber. Grade 2 lumber costs $7per cubic foot and when dried yields 0.9 cu ft of usefullumber. It costs the company $3 to chop down a log. Afterbeing cut and dried, a log yields 0.8 cu ft of lumber. Bradyincurs costs of $4 per cu ft of lumber dried. It costs $2.50per cu ft of logs sent through the sawmill. Each week, thesawmill can process up to 35,000 cu ft of lumber. Eachweek, up to 40,000 cu ft of grade 1 lumber and up to 60,000cu ft of grade 2 lumber can be purchased. Each week, 40hours of time are available for…