Suppose that AlwaysRain Irrigation's marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is: Plastic 30 Plastic 190 Plastic 360 Bronze 90 Bronze 180 Bronze 360 YEARLY DEMAND 1 (IN 000) 2 (TN 000) 3 (IN 000m) 4 (IN 000m) 44 55 56 17 10 64 67 10 23 6 9 17 20 32 15 50 11 6 15 16 55 15 S 16. Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. Three bronze machines and only one injection molding machine are available.

Suppose that AlwaysRain Irrigation's marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is: Plastic 30 Plastic 190 Plastic 360 Bronze 90 Bronze 180 Bronze 360 YEARLY DEMAND 1 (IN 000) 2 (TN 000) 3 (IN 000m) 4 (IN 000m) 44 55 56 17 10 64 67 10 23 6 9 17 20 32 15 50 11 6 15 16 55 15 S 16. Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. Three bronze machines and only one injection molding machine are available.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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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?
Suppose that AlwaysRain Irrigation’s marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is: YEARLY DEMAND 1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s) Plastic 90 32 44 55 56 Plastic 180 15 16 17 18 Plastic 360 50 55 64 67 Bronze 90 11 15 18 23 Bronze 180 6 5 6 9 Bronze 360 15 16 17 20 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. Three bronze machines and only one injection molding machine are available. Required: What are the capacity implications of the marketing campaign? (Assume that there is no learning.) In anticipation of the ad…
Average demand for iPods in the Apple store in Rome, Italy, is800 units per month. The May monthly index is 1.25. What isthe seasonally adjusted sales forecast for May?a) 640 units b) 798.75 unitsc) 800 units d) I ,000 unitse) cannot be calculated with the information given
The K&R Camera shop sells all the latest cameras and accessories. To meet customer demand, the manager must forecast demand for items she sells. Lately the XR-42S zoom lens has been very popular. Recent monthly demand for this item has been as shown: Number of Lenses Month Sold 1 12 17 2 3 4 15 20 18 23 6.
12.2. The manager of the I-85 Carpet Outlet needs to be able to forecast accurately the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customers will buy their carpets from one of the outlet's many competitors. The manager has collected the following demand data for the past eight months: Demand for Soft Shag Carpet (1000 yd) Month ALE ni bno 1 10 6. 4. 8 14 6. 10 7 9. 8. 12 a. Compute a three-month moving average forecast for months 4 through 9. b. Compute a weighted three-month moving average forecast for months 4 through 9. Assign weights of .55, .33, and .12 to the months in sequence, starting with the most recent month. c. Compare the two forecasts using MAD. Which forecast appears to be more accurate? 3.
Average demand for iPods in the Rome, Italy, Apple store is800 units per month. The May monthly index is 1.25. What isthe seasonally adjusted sales forecast for May?a) 640 units b) 798.75 unitsc) 800 units d) 1,000 units
Q1 Given the Supply chain cost for a service is PKR 195 and the customer value is PKR 225. Determine supply chain surplus and consumer surplus. Q2 PizzaHut is a franchise based model which serves customers a variety of pizzas and related products. The service is purely customized. Identify whether the model is push-based supply chain or pull based supply chain. Can we a have push-pull boundary in PizzaHut case? How? Q3 Discuss Qualitative forecasting technique. Explain the situations where we use Qualitative methods. Discuss Delphi forecasting method and its challenge.
A restaurant manager with analyzing records of the last 6 weeks summarizes the daily demand figures in terms of the number of meals served as follows (Please fill the empty cells of the following table): Weeks Number of Meals 3-periods Moving Average [Actual - Forecast] (Actual - Forecast)2 1 60 -- -- -- 2 96 -- -- -- 3 103 -- -- -- 4 61 5 122 6 101 1. Which one of the following is closest to the forecast of the next week ( F7 ) for the number of meals to be served daily using the 3-periods moving average method ? a)143 b)95 c)57 d)62 2. Which one of the following is closest to the forecast error ( in terms of MAD ) for the weeks 4, 5 and 6 using the 3-periods moving average method ? a)22 b)29 c)30 d)24 3. What is the forecast error ( in terms of MSE ) for the weeks 4, 5 and 6 using the 3-periods moving average method ? a)641 b)577 c)705 d)897
» 95 A cosmetics manufacturer's marketing department has developed a linear trend equation that can be used to predict annual sales of its popular Hand & Foot Cream. Ft = 80 + 25t where Ft = Annual sales (000 bottles), t is in years. Predict annual sales for year 6? 170 230 10 % 6 52 min 42 secs
A summary of total charges from a small café’s natural gas bills is provided below: Month kJ Cost October 14 $187 November 17 187 December 30 230 January 35 264 February 33 270 March 20 200 Using regression analysis, the expected cost at 40 kJ would be Question 5Answer a. $296 b. $285 c. $102 d. $162
Demand for stereo headphones and MP3 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 last year was as follows: a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 2 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round your answer to the nearest whole number.)