Exercise 4The Fly-Right Airplanc Company builds small jet planes to scll to corporations for the use of the exccutives.To meet the needs of these exccutives, the company's customers sometimes order a custom design of the airplanes being purchased. When this occurs, a substantial start up cost is incurred to intiate production of theseairplanes.Fly-Right has recently reccived purchase requests from three customers with short deadlines. However, asthe company's production facilities already are almost completely tied up filling previous orders, it will notbe able to accept all three orders. Therefore a decision now needs to be made on the number of airplancs thecompany will agree to produce (if any) for cach of the three customers.The table below gives the relevant information on cach of the three customers. Each customer has a fixedstart-up cost, paid just once irrespective of how many plancs are produced for that customer. The marginalnet revenue is received per plane produced. The third row gives the percentage of available capacity ncededfor each aircraft.The last row states the number of airplanes ordered by cach customer (less will obviously beассеpted).Customer13$3 million $2 million$ 2 million $3 million $0.8 millionStart-up costMarginal net revenueCapacity used per planeMaximum order20 %40 %20%3 planes2 plancs5 planes1. Formulate an integer linear programming model that can be uscd to maximize Fly-Right's total profit(net revenue - start up costs)2. Solve your model using a computer and state the number of airplancs produced for cach customer

Given: 1 2 3 Start-up cost $3 million $2 million 0 Marginal net revenue $2 million $3…

Answered: g purchased. When this occurs, a…

g purchased. When this occurs, a substantia nas recently reccived purchase requests fro ny's production facilities already are almost accept all three orders. Therefore a decision

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 5.2SC: 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. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
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?
A busness is aunchng a new product. The aunch wil require a number of related actvties as follows hre (7 weeks) select an advertising agency (2 weeks), plan an advertising campaign wth the agency (4 weeks),products from the manufacturer (13 weeks) select distributors for the product (9 weeks), take initial orders fromoperation (12 weeks), pack enough products for the launch stock (8 weeks), order the launch quantty ofthe distrbutors (3 weeks), dispatch the initial orders to the distrbutors (2 weeks). (a) What is the earest timeconduct the advertsing campaign (10 weeks), design the packaging of the product (4 weeks), set up packinga sales manager (5 weeks), requre the sales manager to recruit saes peope (4 weeks), tran the sales people that the new product can be ntroduced to the market? (b) If the company hre traned salesmen who do notneed further training, coud the product be introduced 7 weeks earler? (c) How long could one delay selectngthe advertising agency? In the example above,…
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Franklin Tooling, Inc., manufactures specialty tooling for firms in the paper-making industry. All of their products are engineer-to-order and so the company never knows exactly what components to purchase for a tool until a customer places an order. However, the company believes that weekly demand for a few components is fairly stable. Component 135.AG is one such item. The last 26 weeks of historical use of component 135.AG is recorded below. Week Demand Week Demand 1 2 3 4 5 6 7 8 9 10 11 12 13 137 136 143 136 141 128 149 136 134 142 125 134 118 14 15 16 17 18 19 20 21 22 23 24 25 26 131 132 124 121 127 118 120 115 106 120 113 121 119 Use OM Explorer’s Time Series Forecasting Solver to evaluate the following forecasting methods. Start error measurement in the fifth week, so all methods are evaluated over the same time interval. Use the default settings for initial forecasts.i. Naïve (1-Period Moving Average)ii. 3-Period Moving Averageiii. Exponential Smoothing,…
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Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $120 for a comforter. Misu wants a 30% markup on selling price. What is the most that Misu can pay for a comforter? Assume Misu Sheet wants a 30% markup on cost instead of on selling price. What is Misu's cost? Round to the nearest cent.
reeway company introduces an improved version of an PC product in 2021; it is likely that the demand for the existing PC will decline because customers will buy the improved version. The decline in demand for the original product is not indicated by historical data. your opinion about the historical demand data will be: a. the historical demand is still useful in that it allows the firm to estimate the combined total demand for the two versions b. the historical demand is not useful. c. the historical demand is still useful in that it allows the firm to estimate the demand for the old version only d. the historical demand is still useful in that it allows the firm to estimate the demand for the new version only
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