The production manager at Zam Tech has developed following aggregate forecast of its products: Period 1 2 3 4 5 6 7 Forecast 50 44 55 60 50 40 51 The manager has also assembled the following information to help in the development of the aggregate plans: Regular production cost $80.00/unit Overtime production cost $120.00/unit Subcontracting cost $140.00/unit Holding cost $10.00/unit/month Backorder cost $20.00/unit Regular capacity 40 units/month Overtime capacity 8 units/month Subcontracting capacity 12 units per month The manager wants to use a level strategy with a combination of backlogs, subcontracting, overtime and inventory to handle variations in demand. There is no beginning inventory and the safety stock requirement is zero. Note that there should not be a backlog in the final period. Note that no decimal points, commas or spaces in all the answers. (a) What is the level total Production Rate? units

The production manager at Zam Tech has developed following aggregate forecast of its products: Period 1 2 3 4 5 6 7 Forecast 50 44 55 60 50 40 51 The manager has also assembled the following information to help in the development of the aggregate plans: Regular production cost $80.00/unit Overtime production cost $120.00/unit Subcontracting cost $140.00/unit Holding cost $10.00/unit/month Backorder cost $20.00/unit Regular capacity 40 units/month Overtime capacity 8 units/month Subcontracting capacity 12 units per month The manager wants to use a level strategy with a combination of backlogs, subcontracting, overtime and inventory to handle variations in demand. There is no beginning inventory and the safety stock requirement is zero. Note that there should not be a backlog in the final period. Note that no decimal points, commas or spaces in all the answers. (a) What is the level total Production Rate? units

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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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?
You are responsible of developing the six-month aggregate production plan at Sodas Galore, a manufacturer of soft drinks. Your company makes three types of sodas: regular, diet and super-caffeinated. All three types are made using the same production process, and the switching costs can be ignored as they are so minimal. The S&OP team case created the following forecast of demand for the next six months. In addition to the sales forecast, the company has also developed planning values that are also shown in the next table. Month Sales Forecast (cases) Softdrinks Planning Values January 24,000 Current workforce 8 workers 32,000 Average monthly output per worker 32,000 Inventory holding cost 46,000 Regular wage rate February 4,000 cases per month $.30 per case per month $20.00 per hour March April May 60,000 Regular production hours/month 44,000 Overtime wage rate 160 hours June $30.00 per hour 240,000 Hiring cost $1,000 per worker $1.15 per case Total Subcontracting cost Firing/layoff…
A store has the following demand figures for the last four years: Year Demand 100 1 150 3 112 4 200 Given a demand forecast for year 2 of 100, a trend forecast for year 2 of 10, an alpha of 0.3, and a beta of 0.2, what is the demand forecast for year 3 using the exponential smoothing with trend method? 128 115 Ⓒ 135 Ⓒ 145
The following table shows the actual demand observed over the last 11 years: Year 1 Demand 8 2 9 3 5 This exercise contains only parts b, c, and d. b) Using the 3-year moving average, provide the forecast from periods 4 through 12 (round your responses to one decimal place). Year Forecast 4 5 4 10 6 5 13 7 6 7 8 7 11 9 8 14 10 9 8 11 10 13 12 11 8
A method of estimating future demand usedfor decision making in order to set reasonable targets and control orlimit uncertainties or risks.
Over the past 12 months, Super Toy Mart has experienced a demand variance of 10,250 units and has produced an order variance of 12,050 units. Part 2 a) The bullwhip measure for Super Toy Mart is ______ (round your response to two decimal places). Part 3 b) If Super Toy Mart had made a perfect forecast of demand over the past 12 months and had decided to order 1/12 of that annual demand each month, the bullwhip measure would have been ______ (round your response to the nearest whole number.)
The following is the forecasted demand for Olives Company over the next few months. Month Forecasted Demand Jan 9025 Feb 9000 Mar 9450 Apr 9830 May 9630 Jun 10100 Olives Company is considering using a pure chase strategy. The company has an inventory balance of 300 units and a work force capable of making 9000 units at the beginning of January. Stockout cost due to loss sale is estimated to be $800 per unit. Monthly inventory holding cost are $20 per unit. Olives estimates that adding capacity will cost $75 per unit and firing capacity will cost $50 per unit. Under this plan which of the following is true. O Olives will have inventory cost at the end of January of $5500 O Olives will spend $500 on hiring at the beginning of January O Olives will spend $13,750 on firing at the beginning of January Olives will need to use overtime in April, May and June O Olives holding cost will be be a total of $11000 for the entire plan O None of the other answers are correct
a. The manager of the Campus Bookstore is buying 'Class of 22' Aggie branded jackets in preparation for graduation. They have been offered a price of $95 from a supplier and plan to sell the jackets for $125. If there are jackets remaining at the end of May the manager anticipates having to mark them down to $90 to move the inventory. The manager has forecast demand with a mean of 500 jackets and a standard deviation of 75. How many jackets should the manager order, and how many jackets should they expect to markdown? b. A supply chain intern at the store that recently learned about read/react capability has identified a supplier that charges $105/jacket but whose shorter lead time would permit a 2nd order to be placed during the sales season. The intern has also forecast that if this supplier were used, the store should plan for initial demand of 150 jackets with a standard deviation of 50. Based on this information, how many jackets should they recommend the manager purchase and how…
a. The manager of the Campus Bookstore is buying 'Class of 22' Aggie branded jackets in preparation for graduation. They have been offered a price of $95 from a supplier and plan to sell the jackets for $125. If there are jackets remaining at the end of May the manager anticipates having to mark them down to $90 to move the inventory. The manager has forecast demand with a mean of 500 jackets and a standard deviation of 75. How many jackets should the manager order, and how many jackets should they expect to markdown? b. A supply chain intern at the store that recently learned about read/react capability has identified a supplier that charges $105/jacket but whose shorter lead time would permit a 2nd order to be placed during the sales season. The intern has also forecast that if this supplier were used, the store should plan for initial demand of 150 jackets with a standard deviation of 50. Based on this information, how many jackets should they recommend the manager purchase and how…
Problem 18-28 (Algo) The following are historical demand data: YEAR SEASON 2011 Spring Summer Fall 2012 Winter Spring Summer Fall Winter ACTUAL DEMAND 210 136 375 582 465 274 695 972 Use regression analysis on deseasonalized demand to forecast demand in summer 2013. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Forecast for summer 2013
Problem 3-28 (Algo) The following are historical demand data: АCTUAL DEMAND 206 135 373 YEAR SEASON 2 years ago Spring Summer Fall Winter 583 last year Spring Summer 474 275 Fall 694 winter 952 Use regression analysis and seasonal indexes to forecast this summer's demand. (Do not round Intermedlate calculatlons. Round your answer to the nearest whole number.) Forecast for this summer's demand