A shoe company forecasts the following demands during the next six months: month 1-200; month 2-260; month 3-240; month 4-340; month 5-190; month 6-150. It costs $7 to produce a pair of shoes with regular-time labor (RT) and $11 with overtime labor (OT). During each month, regular production is limited to 200 pairs of shoes, and overtime production is limited to 100 pairs. It costs $1 per month to hold a pair of shoes in inventory. a) Formulate a balanced transportation problem by stating the rules. b) Minimize the total cost of meeting the next six months of demand on time by using different methods available and compare the results.

A shoe company forecasts the following demands during the next six months: month 1-200; month 2-260; month 3-240; month 4-340; month 5-190; month 6-150. It costs $7 to produce a pair of shoes with regular-time labor (RT) and $11 with overtime labor (OT). During each month, regular production is limited to 200 pairs of shoes, and overtime production is limited to 100 pairs. It costs $1 per month to hold a pair of shoes in inventory. a) Formulate a balanced transportation problem by stating the rules. b) Minimize the total cost of meeting the next six months of demand on time by using different methods available and compare the results.

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?
Table 1. Demand of Hairdryer from January to July [Jadual 1. Permintaan Pengering Rambut dari Januari 2021 hingga Julai 2021] Month Demand January February 2800 2870 March 2968 April Мay 3000 3100 Jun 3150 July 3400 a) Calculate forecast future demand for May, June, July and August by using 3 months simple moving average.[hitung ramalan permintaan masa depan untuk bulan Mei, Jun, Julai dan Ogos dengan menggunakan purata bergerak sederhana 3 bulan.] *
Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) January 4,150 February 4,250 March 3,950 April 4,350 May 4,950 June 4,650 July 5,250 August 4,850 September 5,350 October 5,650 November 6,250 December 5,950 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this…
c. Compute and tabulate the daily demand for each month in the table below (round off to the nearest whole number). MONTH PRODUCTION DAYS DEMAND FORECAST DEMAND PER DAY JAN 2022 16 150 ? FEB 2022 16 150 ? MAR 2022 23 250 ? APR 2022 21 250 ? MAY 2022 22 400 ? JUN 2022 22 500 ? JUL 2022 21 600 ? AUG 2022 20 750 ? SEP 2022 20 450 ? OCT 2022 20 250 ? NOV 2022 16 150 ? DEC 2022 16 150 ? TOTAL ? ? d. Assuming that MPQ Limited had adopted a level strategy for the year ended 31 December 2022, compute the average daily demand for the year (round off to the nearest whole number). e. Prepare a graph showing the monthly forecasts and average daily forecast (in units per day) for MPQ Limited.
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A steel workshop of PT Mental Baja produces leaf springs for cars. theyhave a demand forecast for the next 6 months as anext:i. January 446 units (production time 20 days)ii. February 600 units (production time 18 days)iii. March 700 units (production time 20 days)iv. April 900 units (production time 20 days)v. May 650 units (production time 20 days)vi. June 550 units (production time 20 days) The following are some important information to be the basis for doingcalculation of production costs as follows:i. Inventory cost $4 per unitii. Subcontractor fee $15 per unitiii. Workers cost $10 per hour or $80 per dayiv. Production time per unit 1.6 hours Tasks and questionsa. Assuming that the number of units that can be produced is 35 units per dayand 1 person can make 7 units, make an estimated cost by usingConstant Workforce approach. b. Assuming that internal processing is carried out usingcapacitors of daily production are the lowest for 6 months and constant,calculate estimated…
. Case: Flamingo Educational Services Flamingo Educational Services, a company located in the Tema metropolis, is a nationwide market leader in the publishing and distribution of textbooks for first and second cycle schools. Somehow, Flamingo does not use forecasts for production planning. Instead, the operations manager decides which books to produce and the batch size, based on orders and the amounts in inventory. The books that have the fewest amounts in inventory get the highest priority. Demand is uneven, and the company has experienced being overstocked on some items and out of others. Being under-stocked has occasionally created tensions with managers of the retail bookstores the company works with. Flamingo is on the verge of losing a lucrative contract with the Ghana Education Service over a complaint that the books produced over the last four months have defective binding as well as slight but noticeable variations in print quality and sizes of the…
1. Foxie Owl’s Besty Bagel shop makes fresh bagels. She has to buy raw materials fresh every day for selling on that day. She wants to know exactly how much should she spend on raw materials. Foxie did some analysis over the past month and came back with the following numbers: Daily demand was equally likely to be 200, 225, 250, 275, or 300 bagels. What should be the number of bagels on hand to satisfy a Fill Rate requirement of 96%, rounded to next integer value? Group of answer choices 300 275 286 263 2. Suppose that instead of a discrete demand distribution, Foxie’s shop determines that the daily demand for bagels is normally distributed, with a mean of 250 and a standard deviation of 35. Foxie still wants a Fill Rate of 98%. What is the appropriate level of on-hand inventory for Foxie’s shop? Group of answer choices 263 274 257 270
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Solve the following questions Q1. A. From the following forecast determine the monthly inventory balances required to follow a plan of letting the inventory absorb all fluctuations in demand. In this case, we have a constant work force, no idle time or overtime, no back orders, no use of subcontractors, and no capacity adjustment. Assume that the firm does not use safety stock or cushion inventory to meet the demand. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month Forecasted demand 90 220 210 400 612 700 378 220 200 110 100 260 Production days 22 18 21 20 22 20 21 22 20 25 19 20
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