Guru Manufacturing has an operation with a six-month requirements schedule given in the table below. They have been following a fixed lot ordering strategy to fulfill the operation's requirements, which costs Guru $350,000 for the six-month planning period. Recently, while attending a supply chain management conference, Sam, Guru's operations manager, met Sarah who is a recently graduated supply chain student and chatted about Guru's operations. Sarah contended that Guru could optimize their requirements planning process leading to reduced overall costs. Capitalizing on the opportunity, Sam hired Sarah as an operations analyst for an annual salary of $80,000 and a bonus of 10% on each dollar she can save Guru on operations. Determined to optimize Guru's requirements planning process, Sarah started collecting data about the process and found that ordering costs Guru $10,000 an order and inventory holding costs Guru $0.50 a unit a month. How much bonus did Sarah make at the end of the six-month planning period? 2 4 5 Period Demand (in thousands) 1 120 80 3 80 70 100 6 60

Guru Manufacturing has an operation with a six-month requirements schedule given in the table below. They have been following a fixed lot ordering strategy to fulfill the operation's requirements, which costs Guru $350,000 for the six-month planning period. Recently, while attending a supply chain management conference, Sam, Guru's operations manager, met Sarah who is a recently graduated supply chain student and chatted about Guru's operations. Sarah contended that Guru could optimize their requirements planning process leading to reduced overall costs. Capitalizing on the opportunity, Sam hired Sarah as an operations analyst for an annual salary of $80,000 and a bonus of 10% on each dollar she can save Guru on operations. Determined to optimize Guru's requirements planning process, Sarah started collecting data about the process and found that ordering costs Guru $10,000 an order and inventory holding costs Guru $0.50 a unit a month. How much bonus did Sarah make at the end of the six-month planning period? 2 4 5 Period Demand (in thousands) 1 120 80 3 80 70 100 6 60

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

What are the benefits of just-in-time purchasing (JITP)?
Economics In the short run, which of the following is most likely a variable cost? a) Vehicle fleet loan paymentsb) Equipment loan paymentsc) water costd) mortgage payments for owned plant facilities
2. Why would firms increase IT investment faster than machinery and building? Write well your answer.
Use the following data that describe market conditions to answer two questions. Money supply (in billions) Interest rate $100 $200 $300 $400 $500 $600 $700 4.0% Rate of investment (in billions) 3.5% $15 $15 $18 3.0% 2.5% 2.0% 1.5% 1.5% $19 $19.5 $19.5 $19.5 Instructions: Enter your responses as a percentage rounded to one decimal place. a. At what rate of interest does the liquidity trap emerge? % b. At what rate of interest does investment demand become totally inelastic? %
Using the EVUPI method, what will be the expected value? Success Moderate Success Failure 0.4 0.5 200 320 Form Joint Venture 222 221 Sell Software on own 334 -222 Probability Sell Company 1) 334.3 2) 314.8 3) 245.4 4) 374.2 0.1 211 212 100
Suggest how Mr. Grant might proceed to evaluate the cost leadership strategy in his business.
When does the marginal cost decrease?
You are a leading builder of the city running your business in the form a company. The city’s municipal corporation has invited tenders from business houses for the construction of the largest flyover of the city. You are eligible for the tender and have the technical capabilities but the amount of security deposit as well as the cost of construction of the flyover is too high and you are not ready to take such a huge risk. You have other competitors in the market who are planning for the tender but are also apprehensive because of the huge risk involved. Please answer the following questions in view of this situation: (a) What do you mean by Joint Venture? (b) What are the reasons behind formation of joint ventures?
Please choose one situation from the 6 ones I sent in the group and write a suitable business letter for the situation
so for a business that has done well enough to have to open a 2nd location and increase workers in order to keep up with demand, if their demand is still increasing, is it best to increase the product price or is it best to keep the same price and expand the business or contract the product with a national chain receiving a percentage of the profits?
value, systems, and people turnoffs. In your experience, which of these three types of turnoffs is the most important? In Walmart how does the manager or the owner in that industry can make changes that will result in lowering the number of turnoff incidents for the type of turnoff you listed above.
Case: Cash is Good, Card is Bad Arlow’s is a small retail store located in a major Midwestern city. Because of its reputation, Arlow’s has been able to attract highly competent professional sales help. All sales clerks are salaried, non-exempt employees who are well paid, but who do not receive commissions.Recently sales have flattened out because of slower economic conditions. Thinking that maybe an extra incentive will help Arlow’s through the economic dip, the store manager decided to institute a 2% commission on cash sales only. Because of the 4% service charge made by credit charge card plans on all charge sales, Arlow’s manager felt that this incentive plan would appeal to the sales clerks and be advantageous to the firm.The manager was right—to right in fact. Some of the sales clerks have become so enthusiastic about getting their 2% that they are being very pushy and insulting to customers who refuse to pay cash and try to use a bank charge card. Consequently, the manager has…