Lake Grove Confectionaries (LGC) sells chocolates for the holiday season in specially designed boxes. The firm sells four designs, and currently, all packaging is done in the plant as chocolates are manufactured. All manufacturing and packaging for the holiday season are completed before the start of the season. The demand forecast for each of the four designs is normally distributed, with a mean m=10,000 and a standard deviation of s=6,000. Each box costs $15 and is sold for $30. Any unsold boxes are discounted by $9. The cost of holding a box in inventory is $1. What is the expected profit of this policy?
Q: Hudson Corporation is considering three options for managing its data warehouse: continuing with its…
A:
Q: MGMT Bakehouse Inc supplies bread, cakes and other specialty products, to a large percentage of the…
A: given, There have been complaints that some product lines and/or customers are experiencing high…
Q: A fresh food company in Oman is specialized in apples distribution in Uman. Annual sales forecast is…
A: The economic order quantity, or EOQ:It is a calculation created to determine the optimal order…
Q: Downtown Health Clinic needs to order influenza vaccines for the next flu season. The Clinic charges…
A: a) The expected number of vaccines can be calculated as follows: Thus, the clinic should order 4300…
Q: A local canning company sells canned vegetables to a supermarket chain in the Minneapolis area. A…
A: The details are listed below: Average days of labor required to supply vegetables = 0.2 Aggregate…
Q: Lou Silva has owned and operated The Wellness Store for fifteen years. The company's year-end is…
A: Recapture is distinguished when the measure of UCC balance is not exactly the proceed [from your…
Q: A landscaping company want to plan for the number of employees it needs to hire for upcoming year.…
A: Find the Given details below: Given details: Year Period Demand 2019 Winter 23 Spring 1000…
Q: Wine Accessories Inc. (WAI) produces two models of corkscrews, the standard model and a deluxe…
A: The master production schedule (MPS) is a schedule that details the number of end items that will be…
Q: Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294…
A: Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304 and 294…
Q: Medaas Electronics is a fictional producer of laser printers. The company's production planner,…
A:
Q: A company manufactures dog leashes that sell for $19.81, including shipping and handling. The…
A: The Break-even point is the point at which the production cost and the production revenue of the…
Q: A company blends and bottles an energy drink in various flavors for college students. The aggregate…
A: A company blends and bottles an energy drink in various flavors for college students. The aggregate…
Q: Lindsey Brentwood is the manager of a fine dining restaurant chain that serves its guests a variety…
A: ANSWER IS AS FOLLOWS:
Q: Jose Martinez of El Paso has developed a polishedstainless steel tortilla machine that makes it a…
A:
Q: D’Unique Enterprise, a company that manufactures hair growth oil is preparing for its upcoming…
A:
Q: 1. Consider the following demand scenario: Quantity Probability 2,000 2,100 3% 8% 2,200 15% 2,300…
A: Given data, Quantity Probability 2000 3% 2100…
Q: The two main sources of end item product demand which become inputs to the MPS are: a. Known…
A: The master production schedule(MPS) is an arrangement for individual wares to be delivered in each…
Q: An entrepreneurial resident of the Oklahoma City metropolitan area is interested in securing a new…
A: Let (X,Y) be the coordinates for the location of the franchise outlet. Using Pythagoras theorem, we…
Q: The distribution of daily demand for party cakes at a bakery is shown in the following table:…
A: Relative frequency Demand Cumulative Relative frequency 0.08 18 0.08 0.02 21 0.1…
Q: Each Shirt is sold for $15. The holding cost per shirt is 6% of the selling price per quarter. The…
A:
Q: The manager of the Campus Bookstore is buying 'Class of 22' Aggie branded jackets in preparation for…
A: Note- Hi! Thank you for the question As per the honour code, We’ll answer the first question since…
Q: Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet…
A: Given that: Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Variable Cost/Book $6 $8…
Q: A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is…
A: Annual demand=5400 boxes Ordering cost=RO 10 Holding cost=RO 3.5 per box per year Price…
Q: Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294…
A: The company has the capacity to produce 280 units per period. Hence, the company will not need to…
Q: A local semiconductor firm, Superchip, is planning its workforce and production levels over the next…
A: Given Information Cost of laying off off a worker = $400Cost of hiring a new worker = $200…
Q: Mario & Luigi own the Super brother canteen. Mario is in-charge of marketing and is developing his…
A: While doing calculations, decimal value consideration play a key role in the final answer. Here,…
Q: Always Rain Irrigation, Inc., would like to determine capacity requirements for the next four years…
A: Given forecast demand for the next 4 years - Yearly Demand in 000's Year 1 Year 2 Year 3 Year 4…
Q: Maruti Suzuki plants at Gurgaon and Maneshar also manufacture the Nexa range of Cars. The production…
A: Find the Given details below: Given details: Monthly Demand (Mean) 18000 cars/Month Yearly…
Q: The Star Youth Soccer Club helps to support its 20 boys' and girls' teams financially, primarily…
A: Devepolment cost=$8000Referee cost per team =$75Revenue by entry fee per team=$400Investment ro be…
Q: Samsung implements a Continuous Inventory System for an electronic component. The inventory manager…
A:
Q: The number of students enrolled in Spring Valley Elementary school has been steadily increasing over…
A:
Q: A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is…
A: Given data: Annual Demand (D) = 5640 Order Cost (S) = OR 10 Holding Cost (H) = OR 3.5 per year To…
Q: A farmer wants to decide which of the three crops he should plant on his 100-acre farm. The profit…
A: Find the Given details below: Given details: Alternative Rainfall High Medium Low Crop A…
Q: The Gotham City News is moving to a paywall subscription service rather than a free news website…
A: Monthly subscription fee = $21 Discount on the on-line subscription rate = 60% Monthly rate for the…
Q: The Rotary Club is holding a pizza sale to finance outreach projects. The Club made an agreement to…
A: Given data: Number of families in community=500 Percentage of families buy pizza = 70% At least 20%…
Q: The manager of the Campus Bookstore is buying 'Class of 22' Aggie branded jackets in preparation for…
A: Cost price of jacket (CP) = $ 95 Selling price of jacket (SP) = $ 125 Salvage cost of jacket (SV) =…
Q: Downtown Health Clinic needs to order influenza vaccines for the next flu season. The Clinic charges…
A: Expected profit means the future value the company wants to earn by selling X units of products and…
Q: A shop is planning an order for a popular Christmas festive season product. Demand for the product…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294…
A: Given Information, Demand = 263 , 256,301,312,304, 294 Production Cost = 12 Regular production =…
Q: The distribution of daily demand for rental trucks at a vehicle rental company is shown in the…
A: Given data, Marginal profit (Cost of underage, Cu) = $ 14 /truck The optimal number of trucks = 4…
Q: Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294…
A: An average inventory holding cost is RO 5 per unit per period. which is 800
Q: A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is…
A: Given data: Annual Demand (D) = 4800 Order Cost (S) = OR 50 Holding Cost (H) = OR 3.5 per year For…
Q: Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company…
A: Find Solution using North-West Corner method, also find optimal solution using modi method,…
Q: H&M’s chief demand planner has estimated that 9,250,000 units of clothing will be sold in 2021.…
A:
Q: The lease cost for a specialized highway design software package is estimated to be $13,000 for each…
A:
Q: Comfort Plus Inc. (CPI) manufactures a standard dining chair used in restaurants. The demand…
A: Q1 Q2 Demand 3700 4200 DAP 12.50 13.75 $/seat CPI 10.25 $/seat (up…
Q: By applying this scenario, help her regress the quantity demanded of her apartments on price,…
A: The regression summary output for the above data is:
Q: Anxloge supplies firms with apparel containing their logo to be used for promotional purposes.…
A: Given, IBM HP Dell Mean 7000 6000 5000 Standard Deviation 3000 1000…
Lake Grove Confectionaries (LGC) sells chocolates for the holiday season in specially designed boxes. The firm sells four designs, and currently, all packaging is done in the plant as chocolates are manufactured. All manufacturing and packaging for the holiday season are completed before the start of the season. The demand
What is the expected profit of this policy?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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?The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.
- A shop is planning an order for a popular Christmas festive season product. Demand for the product usually starts from first week of December till first week of January and reduces sharply thereafter. For this reason, and to stimulate sales for leftovers, the product is sold at a significantly reduced price from the second week of January to the fourth week of January. Any leftover after the fourth week of January goes waste. The table below gives past data on total demand for the period from first week of December to first week of January, and from second week of January to fourth week of January, together with their respective chances of occurrence. The product can be purchased at a wholesale price of GHS60 per unit for a pack containing 600 products, GHS57 per unit for a pack containing 800 products, and GHS52 per unit for a pack containing 1000 products. The shop plans to sell the product for GHS80 per unit from first week of December to first week of January, and at a reduced…A shop is planning an order for a popular Christmas festive season product. Demand for the product usually starts from first week of December till first week of January and reduces sharply thereafter. For this reason, and to stimulate sales for leftovers, the product is sold at a significantly reduced price from the second week of January to the fourth week of January. Any leftover after the fourth week of January goes waste. The table below gives past data on total demand for the period from first week of December to first week of January, and from second week of January to fourth week of January, together with their respective chances of occurrence. The product can be purchased at a wholesale price of GHS60 per unit for a pack containing 600 products, GHS57 per unit for a pack containing 800 products, and GHS52 per unit for a pack containing 1000 products. The shop plans to sell the product for GHS80 per unit from first week of December to first week of January, and at a reduced…LPM Corp. produces and sells two types of frozen burgers, Turkey Burgers and Veggie Burgers. In the most recent month, the firm sold 12,000 Turkey Burgers and 8,000 Veggie Burgers. Turkey Burgers sold for $14.00 per box and variable costs were $7.40 per box. The Veggie Burgers sold for $16.00 per box and variable costs were $8.25 per box. The fixed expenses of the entire company were $41,160. If the sales mix were to shift toward the Turkey Burgers product line with total sales volume remaining constant at 20,000, the overall break-even point for the entire company:
- Weekly demand for Lego at a Wal-Mart store is normally distributed with a mean of 2,500 boxes and a standard deviation of 500. Demand is assumed to be stationary and the mean demand is used as forecast. Each order costs Wal-Mart $145 and holding cost per box per year is estimated at $1.5. Lead time is 2 weeks and the store manager has decided to review inventory every 4 weeks. (Assume a periodic review policy) a. What is safety stock requirement for a service level of 90%? b. What is the order-up-to level? c. What is the total annual variable cost?A hotel near the university always fills up on the evening before football games. History has shown that when the hotel is fully booked, the number of last-minute cancellations has a mean of 5 and standard deviation of 3. The average room rate is $130 and customers need to pay when they make the reservation. When the hotel is overbooked, its policy is to find a room in a nearby hotel and to pay for the room for the customer and this usually costs the hotel approximately $200 since rooms booked on such late notice are expensive. How many rooms should the hotel overbook?The manager of Alaina's Garden Center must make the annual purchasing plans for rakes, gloves, and other gardening items. One of the items the company stocks is Fast-Grow, a liquid fertilizer. The sales of this item are seasonal, with peaks in the spring, summer, and fall months. Quarterly demand (in cases) for the past two years is as follows: Quarter 1 2 3 4 Total Year 1 39 346 292 228 905 The first quarter forecast is to the nearest whole number.) Year 2 55 469 315 315 1,154 If the expected sales for Fast-Grow are 1,214 cases for year 3, use the multiplicative seasonal method to prepare a forecast for each quarter of the year. (Round all intermediate calculations to three decimal places.) cases. (Enter your response rounded
- Product D is stocked only at the AMC Chemical Company's Dallas warehouse and at the company's plant warehouse in Akron. The sales director has forecast product sales from the Dallas warehouse to be 40 units per week for the next 8 weeks. Product D is manufactured at the firm's Akron plant using 2 units of ingredient X per unit of product D. Suppose product D's actual sales at the Dallas warehouse in week 2 were 31 units. Again, all planned shipments/orders were released and expedite actions taken. What action would the master scheduler take on the basis of this information? In this situation, what modifications to the master production schedule might be taken? (4 points) Information: Ingredient X Projected available balance: 4 Units Safety stock quantity: 2 units Product D in Dallas Warehouse Product D in Plant Projected available balance: 85 Units Safety stock quantity: 5 units Lead time: 2 weeks Warehouse Projected available balance: 42 Units Safety stock quantity: 2 units Lead time:…15) JBs needs to determine what quantity of a new tennis racquet to order for the upcoming summer season. They sell the racquet for $110 and procure it from their supplier for $70. Any leftovers will be marked down 60% and are expected to all sell at that price. Anticipated demand is modeled with a normal distribution where the mean is 120 and the standard deviation is 25. How many racquets should JBs order if they want to meet a 95% target fill rate? A) 130 C) 162 B) 127 D) 149Thinking tools service assembles customized personal computers from generic parts. Formed and operated by part-time Svci students paulette cruz and maureen luis, the company has had steady growth since it started. The company assembles computers mostly at night, using part time students. Paulette and Maureen purchase generic computer parts in volume at a discount from a variety of sources whenever they see a good deal. Thus, they need a good forecast of demand for their computers so that they will know how many parts to purchase and stock. They have compiled demand data for the last 12 months as reported below A. Use exponential smoothing with smoothing parameter a=0.2 to compute the demand forecast for january (period 13) B. Use exponential smoothing with smoothing parameter a=0.5 to compute the demand forecast for january (period 13). C. Paulette believes that there is an upward trend in the demand, the initial forecast is 37 and the trend over this period is 0 units. Use…