A linear programming computer package is needed.Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. The cost per pound and the available pounds of each bean are as follows.Bean Cost per Pound Available Pounds1231$0.502$0.703$0.45Consumer tests with coffee products were used to provide ratings on a scale of 0-100, with higher ratings indicating higher quality. Product quality standards for the blended coffee require a consumer rating for aroma to be at least 75 and aconsumer rating for taste to be at least 80. The individual ratings of the aroma and taste for coffee made from 100% of each bean are as follows:Bean Aroma Rating Taste Rating75856085lblblb4508765074450Assume that the aroma and taste attributes of the coffee blend will be a weighted average of the attributes of the beans used in the blend.(a) What is the minimum-cost blend (in pounds) that will meet the quality standards and provide 1,000 pounds of the blended coffee product?Bean 1Bean 2Bean 3(b) What is the cost per pound for the coffee blend (in dollars)?$(c) Determine the aroma rating for the coffee blend.Determine the taste rating for the coffee blend.(d) If additional coffee were to be produced, what would be the expected cost per pound (in dollars)?$

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A linear programming computer package is needed. Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. The cost per pound and the available pounds of each bean are as follows. Bean Cost per Pound Available Pounds $0.50 $0.70 $0.45 1 2 3 2 Consumer tests with coffee products were used to provide ratings on a scale of 0-100, with higher ratings indicating higher quality. Product quality standards for the blended coffee require a consumer rating for aroma to be at least consumer rating for taste to be at least 80. The individual ratings of the aroma and taste for coffee made from 100% of each bean are as follows: 3 Bean Aroma Rating Taste Rating 1 75 85 60 lb 85 lb lb 450 87 650 74 450 Assume that the aroma and taste attributes of the coffee blend will be a weighted average of the attributes of the beans used in the blend. (a) What is the minimum-cost blend (in pounds) that will meet the quality standards and provide 1,000 pounds of the blended coffee product? Bean 1 Bean 2 Bean 3

A linear programming computer package is needed. Hilltop Coffee manufactures a coffee product by blending three types of coffee beans. The cost per pound and the available pounds of each bean are as follows. Bean Cost per Pound Available Pounds $0.50 $0.70 $0.45 1 2 3 2 Consumer tests with coffee products were used to provide ratings on a scale of 0-100, with higher ratings indicating higher quality. Product quality standards for the blended coffee require a consumer rating for aroma to be at least consumer rating for taste to be at least 80. The individual ratings of the aroma and taste for coffee made from 100% of each bean are as follows: 3 Bean Aroma Rating Taste Rating 1 75 85 60 lb 85 lb lb 450 87 650 74 450 Assume that the aroma and taste attributes of the coffee blend will be a weighted average of the attributes of the beans used in the blend. (a) What is the minimum-cost blend (in pounds) that will meet the quality standards and provide 1,000 pounds of the blended coffee product? Bean 1 Bean 2 Bean 3

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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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. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Markman Industries employs a standard cost system. It has established the following standards for the prime costs of its air rifle product line: Standard quantity Standard price Standard cost Direct materials $21.80/kg $ 87.20 4 kg 0.5 direct labour hours (DLH) Direct labour $20.00/DLH 4.00 $ 91.20 During November, Markman purchased 13,000 kg of direct materials at a total cost of $295,100. The total factory wages for November were $38,000, 90% of which were for direct labour. Markman manufactured 3,500 air rifles during November, using 13,500 kg of direct materials and 1,900 direct labour hours. Required: a) What was the direct labour efficiency variance for November? b) Over the past year, Markman's management team attempted to reduce the number of customer complaints relating to the product by sourcing higher-quality direct materials from a different supplier. Explain the effect this has had on the direct material variances. Do you believe this has also impacted the direct labour…
Deborah Kellogg buys Breathalyzer test sets for the Winter Park Police Department. The quality of the test sets from her two suppliers is indicated in the following table: Percent Defective Probability for Winter Park Probability for Dayton 1% 3% 5% .70 .20 .10 .30 .30 .40 Kellogg orders 10,000 tests per order. A defective Breathalyzer test set can be repaired for $0.50. When determining the costs for each branch (Decision Tree), utilize the number per order (*) the percent defective (*) the repair cost. a. What is the EMV for Winter Park? $ [Select ] b. What is the EMV for Dayton? $$127 c. What choice should Deborah Kellogg make? [Select] >
Sarah Smith is the marketing manager for Activa. She decides to run a sales promotion to boost the brand's business and is interested in evaluating the success of the promotion. The following is key information for her review. Brand price to retailer: Brand price to consumer: Brand gross profit per case: S 3.87 Brand Marginal contribution: Sales forecast for November 2019: 24,600 cases Sales during November 2019 promotion period: 32,150 cases $ 9.50 per case $ 1.29 per 8 oz. package 23% Describe how the marketing manager will determine the "promotion lift" for the brand and indicate what the "lift" will be based on the information provided above. Show your work for this problem's answer.
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Hair Zone manufactures a brand of hair-styling gel. It is considering adding a modifiedversion of the product—a foam that provides stronger hold. Hair Zone’s variable costs and prices to wholesalers are: Current Hair Gel New Foam Product Unit selling price 2.00 2.25 Unit variable costs . 85 1.25Hair Zone expects to sell 1 million units of the new styling foam in the first year after introduction, but it expects that 60% of those sales will come from buyers who normally purchase Hair Zone’s styling gel. Hair Zone estimates that it would sell 1.5 million units of the gel if it did not introduce the foam. If the fixed cost of launching the new foam will be $100,000 during the first year, should Hair Zone add the newproduct to its line? Why or why not?
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A regional distributor purchases discontinued appliances from various suppliers andthen sells them on demand to retailers in the region. The distributor operates 5 daysper week, 52 weeks per year. Only when it is open for business can orders bereceived. The following data are estimated for the mixer:Average daily demand (d) = 100 mixersStandard deviation of daily demand (d) = 30 mixersLead time (L) = 3 daysHolding cost (H) = $9.40/unit/yearOrdering cost (S) = $35/order 4 Cycle-service level = 92 percentSuppose that a periodic review (P) system is used at the distributor.a) Calculate the P (in workdays, rounded to the nearest day) that givesapproximately the same number of orders per year as the EOQ.b) It is time to review the item. On-hand inventory is 40 mixers; receipt of 440mixers is scheduled, and no backorders exist. How much should bereordered?c) What is the target inventory level, T?d) What is the total annual cost of the P system?
A regional distributor purchases discontinued appliances from various suppliers andthen sells them on demand to retailers in the region. The distributor operates 5 daysper week, 52 weeks per year. Only when it is open for business can orders bereceived. The following data are estimated for the mixer:Average daily demand (d) = 100 mixersStandard deviation of daily demand (d) = 30 mixersLead time (L) = 3 daysHolding cost (H) = $9.40/unit/yearOrdering cost (S) = $35/order Cycle-service level = 92 percentSuppose that a periodic review (P) system is used at the distributor. Step 1 : Calculate the P (in workdays, rounded to the nearest day) that givesapproximately the same number of orders per year as the EOQ.
Lomotan Piggery grows pigs to sell to a meat processing company. It is known for a fact that its peak season is during the first quarter of the year. Lomotan Piggery has checked the demand for pigs for the past three years which is shown below: Demand for Pigs at Lomotan Piggery: Demand (1,000s) per Quarter Year Q1 Q2 Q3 Q4 Total 2011 47 43 41 39 170 2012 48 46 38 44 176 2013 49 44 46 37 176 Total 144 133 125 120 522 What are the quarter 3 forecasts for 2014 using linear trend?
At an Oxford grocery store, the manager Jenny Produce buys lettuce each day to ensure really fresh produce. In her focus on quality, each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week Jenny can buy fresh lettuce for $10.00 a box. The lettuce is sold for $22.00 a box and the dealer that sells old lettuce is willing to pay $2.00 a box. Past history says that tomorrow's demand for lettuce averages 270 boxes with a standard deviation of 44 boxes. How many boxes of lettuce should Jenny purchase tomorrow? (Use Excel's NORMSINV() function to find the Z-score. Round intermediate calculations to four decimal places. Round your answer to the nearest whole number.) I have asked this 3 times and nobody has got it right.
Based on the following sensitivity report, what would be the impact of changing the objective function coefficient for Product_1 to 17 and changing the objective function coefficient for Product_3 to 10? Variable Cells Cell Name Final Value Reduced Cost Objective Coefficient AllowableIncrease AllowableDecrease $B$2 Product_1 0 −2 12 7 1E+30 $B$3 Product_2 175 0 8 1E+30 9 $B$4 Product_3 0 −1.5 8 3 1E+30 Constraints Cell Name Final Value Shadow Price Constraint R.H.Side AllowableIncrease AllowableDecrease $H$9 Resource_A 0 0 100 1E+30 100 $H$10 Resource_B 525 0 800 1E+30 275 $H$11 Resource_C 700 1.75 700 366.6666667 700 Fill the blanks Applying the 100% rule _________________ because the total change in the objective function coefficients ______________ 100%