Sec102Team6StrategicPlan (2)
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Simulation Strategic Plan
COMR 465 102
Instructor’s Name: Phaedra Burke
Date Submitted: Sunday November 6th, 2022
Simulation Team: 6
Names: Isha Afzal, 51722585
Lynn Campbell, 19443662
Emma Ho, 37195534
Koosha Issari, 66800392
Maanit Rohira, 21952205
Simulation Strategic Plan
Company Vision
Prime Apparel wants to minimize costs of production and marketing expenses in
order to maximize the rate of return on investment. Assuming estimated sales, we
will implement a target return pricing strategy with the goal of a 50% gross profit
margin on our packs.
Company Mission
At Prime Apparel, we value accessibility, reliability, and versatility. We are
committed to providing comfortable, minimalistic, and high-capacity daypacks
that are not only suitable, but essential, for all your day-to-day backpack needs.
Objectives
1.
Gain majority market share among our target segments (university
and school children).
We will consider market size, growth rates, purchase behavior, price
preference data, and desired characteristics (alongside their corresponding
production costs) to target the consumer segments with the greatest
potential for generating revenue.
Since school children have the greatest market share, our primary focus is
to appeal to their needs. However, we will sacrifice some of their desired
characteristics to maintain a design that is minimalistic enough to appeal
to other segments. Considerably, the design’s simplicity would also benefit
us in keeping the cost of production low.
2.
Price the backpack to maximize marginal revenue while remaining in
the budget of our target consumers.
We will aim to find the highest price that our desired consumers would
pay for the value of our daypack. We will aim higher than the average
price preference of our target market segments to find the maximum we
could charge without overvaluing our product. We are aiming to set a price
that is high, but still within budget for our target segments. Since the
1
production costs are low, our pricing will still be an affordable option in
comparison to competitors using more expensive materials.]
3.
Distribute through as many channels as possible to establish
brand-recognition and choose a marketing strategy that is
cost-effective.
We want to keep advertising costs low and will limit our advertising
budget to less than 10% of our estimated revenue. With a high marginal
profit on each backpack, we hope to be able to distribute through many
channels and still make a significant profit after paying distributors.
Proposed Backpack
1.
Product (backpack) Strategy
The target market is school children, but we are also directing towards
university students. We want to design a bag which will be targeted
towards school children, but make it a mature design so older students can
also use it. This means no cartoon graphic images.
2.
Placement (distribution) Strategy
We want to try to get as many placement channels as possible with a
positive profit. We will try to place the backpack into the following
channels: Department store, Online discount retailer, Direct, Discount
retail chain, and University Store.
3.
Target Market Strategy
We are targeting School Children since they have the largest market size
of 36,413 which is about 34% in the total market of 106,171. Also, this
group has the highest product awareness with 19%.
4.
Pricing Strategy
We utilized the Everyday Low Pricing strategy to decide on a price of $32
per unit. Due to our choice to use inexpensive materials, the cost of
production is low. Even though our price is set so the company makes a
significant marginal profit, our packs will still be an affordable option
compared to competitors offering more (costly) features. We predict that
many of our competitors will have a higher cost of production and,
2
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Related Questions
Previous Problem
Problem List
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(1 point) Using diaries for many weeks, a study on the lifestyles of visually impaired students was conducted. The
students kept track of many lifestyle variables including how many hours of sleep obtained on a typical day.
Researchers found that visually impaired students averaged 9.2 hours of sleep, with a standard deviation of 2.24
hours. Assume that the number of hours of sleep for these visually impaired students is normally distributed.
(a) What is the probability that a visually impaired student gets less than 6.4 hours of sleep?
answer:
(b) What is the probability that a visually impaired student gets between 6.2 and 8.84 hours of sleep?
answer:
(c) Thirty percent of students get less than how many hours of sleep on a typical day?
answer:
hours
Note: You can earn partial credit on this problem.
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Problem 7-09 (Algorithmic)
Hawkins Manufacturing Company produces connecting rods for 4- and 6-cylinder automobile engines using the same production line. The cost required to set up the production line to produce the 4-cylinder connecting rods is $1,400, and the cost required to set up the production line for
the 6-cylinder connecting rods is $3,100. Manufacturing costs are $15 for each 4-cylinder connecting rod and $18 for each 6-cylinder connecting rod. Hawkins makes a decision at the end of each week as to which product will be manufactured the following week. If a production
changeover is necessary from one week to the next, the weekend is used to reconfigure the production line. Once the line has been set up, the weekly production capacities are 6,500 6-cylinder connecting rods and 8,200 4-cylinder connecting rods.
Let
X4 = the number of 4-cylinder connecting rods produced next week
X6 = the number of 6-cylinder connecting rods produced next week
S4= 1 if the production line is…
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A method of estimating future demand usedfor decision making in order to set reasonable targets and control orlimit uncertainties or risks.
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A)decision table with probability for decision under risk
B)Best decision under emv method
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Question 6
A Discrete Probability Distribution is given below:
Class
A
B
с
D
Probability (%)
18
33
27
22
Calculate the probability that class A does NOT occur. Express your answer as a
whole number without the percentage sign (%).
A
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You work for the Brad's Nailer Company which manufactures three types of nailers: a
pneumatic model, the "ProLine", and a cordless model. You have contracted to supply
a national retail chain with all three models of nailers. However, Brad's nailer
production capability is limited in three departments: production, testing, and
packaging. The goal is to maximize your revenue.
Your answer will be the number packaging hours to be produced (The number of
nailers must be a whole number.)
Use Scenario 2
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Problem 3-11 Future Value of Reduced Spending [LO3-4]
Brenda plans to reduce her spending by $80 a month. Calculate the future value of this increase in savings over the next 10 years.
(Assume an annual deposit to her savings account, and an annual interest rate of 4 percent.) (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit
1-D)
Note: Use appropriate factor(s) from the tables provided. Round time value factor to 3 decimal places and final answer to 2
decimal places.
Future value
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Scenario for question
Thabo Auto Parts is a very small scrapyard in Bloemfontein that started operating in February 2021 and they sell parts for BMW cars. Currently, they serve the customers in Bloemfontein. Even though Thabo Auto Parts has a limited marketing budget and few resources (e.g., employees), they are considering engaging in digital marketing. They already have a Facebook account that is used once a week to only post items on promotion to their 50 followers. Thabo Auto Parts manager states that they have seen too little benefits from marketing on Facebook, and they are, therefore, reluctant to invest further into digital marketing. The manager of Thabo Auto Parts has approached you for advice
Identify the mistakes, if any, that Thabo Auto Parts did when using Facebook for marketing, discuss what they should consider for optimal benefits of Facebook marketing
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Scenario for question
Thabo Auto Parts is a very small scrapyard in Bloemfontein that started operating in February 2021 and they sell parts for BMW cars. Currently, they serve the customers in Bloemfontein. Even though Thabo Auto Parts has a limited marketing budget and few resources (e.g., employees), they are considering engaging in digital marketing. They already have a Facebook account that is used once a week to only post items on promotion to their 50 followers. Thabo Auto Parts manager states that they have seen too little benefits from marketing on Facebook, and they are, therefore, reluctant to invest further into digital marketing. The manager of Thabo Auto Parts has approached you for advice
Explain to the Thabo Auto Parts manager what impact will digital marketing have on their business and suggest the three most appropriate digital marketing strategies (other than Facebook) for Thabo Auto Parts? You also need to explain why the three digital marketing strategies you…
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Scenario for question
Thabo Auto Parts is a very small scrapyard in Bloemfontein that started operating in February 2021 and they sell parts for BMW cars. Currently, they serve the customers in Bloemfontein. Even though Thabo Auto Parts has a limited marketing budget and few resources (e.g., employees), they are considering engaging in digital marketing. They already have a Facebook account that is used once a week to only post items on promotion to their 50 followers. Thabo Auto Parts manager states that they have seen too little benefits from marketing on Facebook, and they are, therefore, reluctant to invest further into digital marketing. The manager of Thabo Auto Parts has approached you for advice
Discuss which copyrights, patent or trade secret, if any, will result from this work.
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Observations Actual Data Forecast
1 240 192.39
2 207 202.15
3 168 189.27
Calculate MAD, MSE, MAPE & U
All calculations are supposed to be done by hand, not on Excel.
Here is the formula sheet
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As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected:
Monthly fixed cost (loan payment, taxes, insurance, maintenance) $6000
Variable cost per occupied room per night $ 20
Revenue per occupied room per night $ 75
A. Write the expression for total cost per month. Assume 30 days per month.
B. Write the expression for total revenue per month.
C. How many rooms do they need to sell per night in order to break even?
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Article: Planning for Holiday Shipping at FedEx
FedEx started as Federal Express in 1971 and made its first delivery in 1973 with 14 aircrafts and 389 employees, successfully delivering 186 packages.50 The company was founded by Frederick W. Smith who first presented his idea for the shipping company in a term paper for a business class at Yale University in 1964. Smith did not do well on the paper as his professor did not see the need for overnight package deliveries. But more than 45 years later, Smith has clearly proved his professor wrong. FedEx now employs more than 325,000 employees and uses its 652 aircraft and more than 100,000 trucks to ship on average 10.5 million packages a day in over 220 countries.
Managing such a large enterprise with so much complexity clearly requires effective planning. Similar to other shipping companies, FedEx engages in significant planning to prepare for Christmastime deliveries, the company’s peak season. FedEx typically meets with major…
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b. Based on this extrapolation, when would Amazon be predicted to equal Walmart in revenue?c. Why has Amazon been growing faster than Walmart? Is the slow growth of Walmart related to the rapid growth of Amazon?
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Percentage Service Provided toDepartment Cost S1 S2 P1 P2Service 1 (S1) $ 112,000 0% 40% 40% 20%Service 2 (S2) 44,000 20 0 40 40Production 1 (P1) 345,000Production 2 (P2) 216,000Total $ 717,000Brief Exercises 7-15 and 7-16 require the following information:7-15 What percentage of S1’s costs is allocated to P1 and to P2 under the direct method?7-16 What percentage of S2’s costs is allocated to P1 and to P2 under the direct method?
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An example of constructed balanced scorecard
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1. Decision Rules.
A company is choosing a motorized mechanism for a new toy, a dancing ballerina
(TippiToes) that is currently under development. Demand is uncertain. but the
company is confident that demand will be: Light (25,000 units), Moderate (100,000
units) or Heavy (150,000) units.
The payoff table for each mechanism (in $) is given below.
Action: Choice of Mechanism
Event
Gears and Levers
Spring
Weights and Pulleys
Pneumatic
Light
25,000
-10,000
-125,000
-300,000
Moderate
400,000
440,000
400,000
300,000
Heavy
650,000
740,000
750,000
700,000
Questions:
(1) Apply Maximax, Maximin, Minimax Regret, and EMV rules (assuming that the
probability of Light demand is 0.1, Moderate demand is 0.7, and Heavy
demand is 0.2) to decide what mechanism should the company choose?
(2) What is the expected value of perfect information?
(3) Draw a decision tree to solve this problem.
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3. A toy manufacturer makes stuffed kittens and puppies which have relatively lifelike motions. There are three
different mechanisms that can be installed in these "pets." These toys will sell for the same price regardless of
the mechanism installed, but each mechanism has its own variable cost and setup cost. Profit, therefore, is
dependent upon the choice of mechanism and upon the level of demand. The manufacturer has in hand a
forecast of demand that suggests a 0.2 probability of light demand, a 0.45 probability of moderate demand,
and a probability of 0.35 of heavy demand. Payoffs for each mechanism-demand combination appear in the
table below.
Wind-up action
Pneumatic action
Electronic action
Demand
Light
Moderate
$250,000
$90,000
-$100,000
400,000
440,000
400,000
Heavy
650,000
740,000
780,000
Construct the appropriate decision tree to analyze this problem. Use standard symbols for the tree.
Analyze the tree to select the optimal decision for the manufacturer.
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PROBLEM 2:The manager of a large manufacturer of industrial pumps prepare forecasts for a six- month period.
Month Demand Forecast
1 492 488
2 470 484
3 485 480
4 493 490
5 498 497
6 492 493
Required: Compute for the MAD, MSE, and MAPE.
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Case Exercise 3: Demand Forecasting for an Insurance Company
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subject: Quantitative Analysis For Business
Please answer both.
22. Dawn owns a dog day care company that offers kenneling services for dogs that weigh less than 30 pounds. Dawn has decided to expand the building that houses the kennels by 1,000 square feet. A friend suggested that Dawn consider three expansion options: 1) only board dogs under 30 pounds; 2) only board dogs larger than 30 pounds; or 3) split the new space, allocating 50% to dogs under 30 pounds and 50% to dogs over 30 pounds.
Expansion Options
Strong Economy
Weak Economy
Likelihood 40%
Likelihood 60%
Only dogs under 30 pounds
$19,000 increase in revenue
$18,000 increase in revenue
Only large dogs
$22,000 increase in revenue
$15,000 increase in revenue
Split the space between small and large dogs
$20,000 increase in revenue
$16,000 increase in revenue
Based on the table shown above, which option has the highest expected value?
Splitting the space between small and large…
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Problem 1. During your first month as an employee at Greenfield Industries (a large drill-
bit manufacturer), you are asked to evaluate alternatives for producing a newly designed
drill bit on a turning machine. Your boss' memorandum to you has practically no information
about what the alternatives are and what criteria should be used. The same task was posed
to a previous employee who could not finish the analysis, but she has given you the following
information: An old turning machine valued at $350,000 exists (in the warehouse) that can
be modified for the new drill bit. The in-house technicians have given an estimate of
$40,000 to modify this machine, and they assure you that they will have the machine ready
before the projected start date (although they have never done any modifications of this
type). It is hoped that the old turning machine will be able to meet production requirements
at full capacity. An outside company, McDonald Inc., made the machine seven years ago and
can…
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Problem
Answer ALL questions from this section. Write your answers on the supplied answer sheet.
Show sufficient work. If necessary, round intermediate calculations and final answers to three
decimal places.
J
1. The manager of a crew that installs carpeting has tracked the crew's output over the past several we
eks, obtaining these figures:
Week
10
20
30
43
50
6
Crew Size
تمه
30
45
Yards Installed
96-
72-
92-
50,
699
52-
20
39
2₂
Compute the labor productivity for each of the weeks. On the basis of your calculations, what
can you conclude about crew size and productivity?
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On
Week
a)
Item: P24
hand
1
2
3
4
5
6
7
8
Forecast
30
30
30
40
40
40
45
45
Customer Orders
13
8
4
PAB
20
Available to Promise
MPS
b)
Determine if each customer order will be accepted.
Order Amount Week
Accept (Y/N)
1
40
2
30
3
4
30
25
462M
3
Update the MPS time-phased record for accepted orders.
Item: P24
Forecast
Customer Orders
Problem 3: The MPS planner at Murphy Motors uses MPS time-phased records for planning end-item
production. The planner is currently working on a schedule for the P24, one of Murphy's top-selling
motors. The planner uses a production lot size of 70 and a safety stock of 5 for the P24 motor.
a) Complete the MPS time-phased record for product P24. Use the table on the left.
b) Determine if Murphy Motors can accept each of the following customer orders. Update the MPS time-
phased record for accepted orders.
Order
1234
Amount
40
Desired Week
4
30
30
25
623
8
4
On
Week
hand
1
2
3
4
5
6
30
30
30
40
40
40
74
45
45
PAB
20
Available to Promise
MPS
On hand = 20
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What is the average number of tennis balls does Skousen maintain?
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Related Questions
- Previous Problem Problem List Next Problem (1 point) Using diaries for many weeks, a study on the lifestyles of visually impaired students was conducted. The students kept track of many lifestyle variables including how many hours of sleep obtained on a typical day. Researchers found that visually impaired students averaged 9.2 hours of sleep, with a standard deviation of 2.24 hours. Assume that the number of hours of sleep for these visually impaired students is normally distributed. (a) What is the probability that a visually impaired student gets less than 6.4 hours of sleep? answer: (b) What is the probability that a visually impaired student gets between 6.2 and 8.84 hours of sleep? answer: (c) Thirty percent of students get less than how many hours of sleep on a typical day? answer: hours Note: You can earn partial credit on this problem. Preview My Answers Submit Answers You have attempted this problem 0 times. You have unlimited attempts remaining.arrow_forwardProblem 7-09 (Algorithmic) Hawkins Manufacturing Company produces connecting rods for 4- and 6-cylinder automobile engines using the same production line. The cost required to set up the production line to produce the 4-cylinder connecting rods is $1,400, and the cost required to set up the production line for the 6-cylinder connecting rods is $3,100. Manufacturing costs are $15 for each 4-cylinder connecting rod and $18 for each 6-cylinder connecting rod. Hawkins makes a decision at the end of each week as to which product will be manufactured the following week. If a production changeover is necessary from one week to the next, the weekend is used to reconfigure the production line. Once the line has been set up, the weekly production capacities are 6,500 6-cylinder connecting rods and 8,200 4-cylinder connecting rods. Let X4 = the number of 4-cylinder connecting rods produced next week X6 = the number of 6-cylinder connecting rods produced next week S4= 1 if the production line is…arrow_forwardA method of estimating future demand usedfor decision making in order to set reasonable targets and control orlimit uncertainties or risks.arrow_forward
- A)decision table with probability for decision under risk B)Best decision under emv methodarrow_forwardQuestion 6 A Discrete Probability Distribution is given below: Class A B с D Probability (%) 18 33 27 22 Calculate the probability that class A does NOT occur. Express your answer as a whole number without the percentage sign (%). Aarrow_forwardYou work for the Brad's Nailer Company which manufactures three types of nailers: a pneumatic model, the "ProLine", and a cordless model. You have contracted to supply a national retail chain with all three models of nailers. However, Brad's nailer production capability is limited in three departments: production, testing, and packaging. The goal is to maximize your revenue. Your answer will be the number packaging hours to be produced (The number of nailers must be a whole number.) Use Scenario 2arrow_forward
- Problem 3-11 Future Value of Reduced Spending [LO3-4] Brenda plans to reduce her spending by $80 a month. Calculate the future value of this increase in savings over the next 10 years. (Assume an annual deposit to her savings account, and an annual interest rate of 4 percent.) (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D) Note: Use appropriate factor(s) from the tables provided. Round time value factor to 3 decimal places and final answer to 2 decimal places. Future valuearrow_forwardScenario for question Thabo Auto Parts is a very small scrapyard in Bloemfontein that started operating in February 2021 and they sell parts for BMW cars. Currently, they serve the customers in Bloemfontein. Even though Thabo Auto Parts has a limited marketing budget and few resources (e.g., employees), they are considering engaging in digital marketing. They already have a Facebook account that is used once a week to only post items on promotion to their 50 followers. Thabo Auto Parts manager states that they have seen too little benefits from marketing on Facebook, and they are, therefore, reluctant to invest further into digital marketing. The manager of Thabo Auto Parts has approached you for advice Identify the mistakes, if any, that Thabo Auto Parts did when using Facebook for marketing, discuss what they should consider for optimal benefits of Facebook marketingarrow_forwardScenario for question Thabo Auto Parts is a very small scrapyard in Bloemfontein that started operating in February 2021 and they sell parts for BMW cars. Currently, they serve the customers in Bloemfontein. Even though Thabo Auto Parts has a limited marketing budget and few resources (e.g., employees), they are considering engaging in digital marketing. They already have a Facebook account that is used once a week to only post items on promotion to their 50 followers. Thabo Auto Parts manager states that they have seen too little benefits from marketing on Facebook, and they are, therefore, reluctant to invest further into digital marketing. The manager of Thabo Auto Parts has approached you for advice Explain to the Thabo Auto Parts manager what impact will digital marketing have on their business and suggest the three most appropriate digital marketing strategies (other than Facebook) for Thabo Auto Parts? You also need to explain why the three digital marketing strategies you…arrow_forward
- Scenario for question Thabo Auto Parts is a very small scrapyard in Bloemfontein that started operating in February 2021 and they sell parts for BMW cars. Currently, they serve the customers in Bloemfontein. Even though Thabo Auto Parts has a limited marketing budget and few resources (e.g., employees), they are considering engaging in digital marketing. They already have a Facebook account that is used once a week to only post items on promotion to their 50 followers. Thabo Auto Parts manager states that they have seen too little benefits from marketing on Facebook, and they are, therefore, reluctant to invest further into digital marketing. The manager of Thabo Auto Parts has approached you for advice Discuss which copyrights, patent or trade secret, if any, will result from this work.arrow_forwardObservations Actual Data Forecast 1 240 192.39 2 207 202.15 3 168 189.27 Calculate MAD, MSE, MAPE & U All calculations are supposed to be done by hand, not on Excel. Here is the formula sheetarrow_forwardAs part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance) $6000 Variable cost per occupied room per night $ 20 Revenue per occupied room per night $ 75 A. Write the expression for total cost per month. Assume 30 days per month. B. Write the expression for total revenue per month. C. How many rooms do they need to sell per night in order to break even?arrow_forward
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