Yield management is most effective when it meets the five characteristics, from operational perspective. Choose at least 3 and explain your answer by giving examples.

Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 11,000; winter, 8,000; spring, 6,000; summer, 13,000.  Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer.  In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stockouts at the end of those quarters.  Overtime is not available during the fall.  Relevant costs are hiring, $100 for each temp; layoff $200 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour.  Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. a. What is the total cost for this plan?

A typical Latino coffee farmer has fixed costs of $10,000 per year. Under the old distribution system, the farmer is paid $.40 per pound (U.S. weight measure) and the farmer’s variable cost per pound is $.30. What is the farmer’s breakeven point in units (pounds) under the old system? What is the farmer’s breakeven point in dollars? Show all math.

Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $15,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $20,000 so he can obtain the bank's approval for the loan. Current Situation Sales Cost of material $100,000 $45,000 (45%) Production costs Fixed cost Profit $25,000 (25%) $15,000 (15%) $15,000 (15%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $20,000? What is the cost of material with a $20,000 profit? A decrease of 11.1 % in material (supply-chain) costs is required to yield a profit of $20,000, for a new material cost of $40000. (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.)