The Gulf Coast Foundry is developing a long-range strategic plan for buying scrap metal for its foundry operations. The foundry can buy scrap metal in unlimited quantities from two sources, Atlanta (A) and Birmingham (B), and it receives the scrap daily in railroad cars. The scrap is melted down, and lead and copper are extracted for use in the foundry processes. Each railroad car of scrap from source A yields 1 ton of copper and 1 ton of lead and costs $10,000. Each railroad car of scrap from source B yields 1 ton of copper and 2 tons of lead and costs $15,000. If the foundry needs at least 21/2 tons of copper and at least 4 tons of lead per day for the foreseeable future, how many railroad cars of scrap should be purchased per day from Source A and Source B to minimize the long-range scrap metal cost?
Q: Examine using practical examples what must be considered from the client's perspective for…
A: Supply chain integration implies bringing together entities in the supply chain, especially through…
Q: Compute Estimate At Completion (EAC) and Variance At Completion (VAC) if both SPI and CPI influence…
A: Find the given details below:
Q: Consider the following linear programming (LP) problem: Given f(x1, x2) = 2x1 + 4x2, min f(x1, x2)…
A: Objective Functions and Constraints:Based on the given details, the objective functions and…
Q: Denny’s and Customer Service Early on the morning of April 1, 1993, 21 members of the U.S. Secret…
A: In the early 1990s, Denny's was accused of racial discrimination. Lawsuits were filed in response to…
Q: Job Flow Time (min) 1 2 3 4 5 6 minutes Makespan: Average flow time: minutes In what order would the…
A: JOBPROCESSING TIME1702903110413051606220
Q: In Jamaica jurisdiction explain the elements for an agreement to be legally enforceable
A: The objective of the question is to understand the elements that make an agreement legally…
Q: Prepare an essay not exceeding two pages to explain to a top procurement and logistics manager the…
A: The objective of this question is to provide a comprehensive understanding of insurance, its…
Q: Which of the following requires an organization to host a vote regarding executive pay at least…
A: The question is asking about which legislation requires organizations to hold a vote on executive…
Q: Expected Monetary Value Suppose that your organization is deciding which of four projects to bid on,…
A: Find the given details below:
Q: What is a research problem on the effects of staff retention and employee morale.
A: The objective of this question is to identify a research problem related to the effects of staff…
Q: Risk management plan
A: NOTE : We are allowed to do one question only. Risk, in the context of decision-making and…
Q: The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition…
A: Inventory management is the aspect of production management of an organization including storing,…
Q: TJ, Inc., makes three nut mixes for sale to grocery chains located in the Southeast. The three…
A: There are 3 products:Regular MixDeluxe MixHoliday Mix5 types of nuts are required to make the above…
Q: the Cardiac Resynchronization Therapies (CRT) business unit within Medtronic creating value for; and…
A: A healthcare unit refers to a specific organizational or functional component within the broader…
Q: Dayton Electronics demands a part at a daily rate of 100 units. The lead time for replenishment is 5…
A: Safety stock is excess inventory that is held in reserve in case of unanticipated drops in supply or…
Q: A farmer in Lufyanyama has 2000 acres of land on which he can grow maize, wheat and Soya beans. Each…
A: For Maize:Cost for preparation: K200 per acreMan-days of work: 14 days per acreProfit: K60 per…
Q: Contemporary issues in Labour and employment Law “If an employer plans to require its employees to…
A: Human resource management plays an integral role in an organization. There are several laws that…
Q: M O Raptor Consulting has three (3) projects to complete this year. They have four (4) project teams…
A: Find the given details below:
Q: The HR department at Clearwater Electronics received notice that a grievance procedure was filed by…
A: Human resource management is the aspect of management that is concerned with managing, supporting,…
Q: Classify the cost elements shown below for the Impressive Printing Company into the proper quality…
A: Find the given details below:
Q: Complete the following MRP record. All gross requirements, beginning inventory levels, and scheduled…
A: MRP helps optimize the utilization of resources by ensuring that raw materials and components are…
Q: Sales per period 0 (1) Launch Product not becoming obsolete Product Growth Maturity Decline Launch…
A: Product development involves coming up with a product, designing it, bringing it into the market. It…
Q: The accountant for a community hospital is preparing the monthly bank reconciliation and notices…
A: The objective of the question is to understand the appropriate steps to be taken when a check has…
Q: Discuss any five factors that Shoprite needs to consider when selecting its suppliers. Make use of…
A: Considering the importance of an efficient and integrated supply chain in the food retail industry,…
Q: The manufacturer of children's toys designed a special toy truck that can be assembled in 8 basic…
A: We'll do the following actions to determine the assembly line's efficiency and the overall amount of…
Q: f. Calculate the efficiency of the line. g. Calculate the total idle time.
A:
Q: Hello, thanks greatly but why did you use maximum time duration and not shortest time rule in…
A: Here is a detailed version of the solution you are expecting.Note: It has been taken as 1000 ball…
Q: The Baton Rouge Police Department has five detective squads available for assignment to five open…
A: CasesSquadABCDE11034521281271221313252426841473727520712630
Q: The reorder point is defined as the lead-time demand for an item. In cases of long lead times, the…
A:
Q: We're looking to replace some of our associate learning and development (L&D) processes towards…
A: Annual license cost:loopo =5820 vavue =7300(1-0.15)=6205wazaar…
Q: A process considered to be in control measures an ingredient in ounces. Roberto Baggio, a quality…
A:
Q: Human Resources Business Discussion Using in-text citiations and APA format, respond to the…
A: Human Resource Management (HRM) can be defined as the strategic organisational function that focuses…
Q: oom registrations in the Toronto Towers Plaza Hotel have been recorded for the past 9 years. To…
A: Regression is the aspect of statistics that is concerned with determining the character and strength…
Q: Explain how process capability (Cp and Cpk) is statistically useful in Six Sigma?
A: A statistical definition of the potential of a production process to repeatedly produce acceptable…
Q: Risk Management at MS Company MS Company is a Trading Company involved in Import and export trade.…
A: The objective of this question is to identify the types of insurance that MS Company could have…
Q: a. Determine P, Sp, UCL and LCL for a p chart of 95 percent confidence (at Z=1.96). Note: Round your…
A: AreaNumber of crimes Sample…
Q: Suppose in the Dorian production model that no -minimum production limits are placed on the…
A: For the condition that Dorian should create in any event 1500 vehicles in entirety, think about the…
Q: Which type of union lets employees decide whether or not they want to join the union, although they…
A: The question is asking about the type of union that allows employees the choice to join or not join…
Q: Recommend the strategies which Mukwano Industries Limited may use to ensure an effective inventory…
A: The objective of this question is to provide strategies that Mukwano Industries Limited can use to…
Q: he board of directors of General Wheels Company is considering seven large capital investments. Each…
A: Linear programming helps us to find the optimal solution/best outcome, given the constraints.…
Q: Nikos Anastopoulos of EMPROSS Strategic IT Consultants, leads the development of a new football…
A: Formulas used:Forward Pass:Early Start (ES) = Max EF value from immediate Predecessor(s)Early Finish…
Q: Use Holt’s method to create a model that minimizes the MSE for the data set (see picture attached).…
A: Find the given details below:Note that, here initial alpha, beta, and trend values are not provided…
Q: Prepare a managerial report that addresses the following issues and recommends an order quantity for…
A: Selling price = $24Cost = $16Salvage value = $5
Q: A firm uses a fixed time period model to manage a type of bolts they keep in inventory. The average…
A: Periodic review/fixed period Here inventory is checked at pre fixed review intervals and an order is…
Q: A hospital emergency room needs the following numbers of nurses: Day MTW Min. number 4 5 8 Each…
A: Workforce scheduling is a part of capacity management in organizations where customer arrival…
Q: Work Breakdown Structure (WBS): Develop a detailed work breakdown structure that lists all the tasks…
A: A Work Breakdown Structure (WBS) is a hierarchical representation that organizes and outlines all…
Q: When backing up the data base of the LIS, where should the backup disc/tape be stored? In the…
A: The objective of the question is to identify the best location to store the backup disc/tape of the…
Q: Kalyan Singhal Corp. makes three products, and it has three machines available as resources as given…
A: Changing a real-world issue into a mathematical model that can be managed with LP procedures is…
Q: Analyze any five (5) decisions that operations managers might make to ensure and attain quality in…
A: In the increasingly competitive industrial scene, obtaining and maintaining high-quality standards…
Q: Given the following information, compute the economic order quantity, annual holding cost, annual…
A: Find the given details below:
The Gulf Coast Foundry is developing a long-range strategic plan for buying scrap metal for its foundry operations. The foundry can buy scrap metal in unlimited quantities from two sources, Atlanta (A) and Birmingham (B), and it receives the scrap daily in railroad cars. The scrap is melted down, and lead and copper are extracted for use in the foundry processes. Each railroad car of scrap from source A yields 1 ton of copper and 1 ton of lead and costs $10,000. Each railroad car of scrap from source B yields 1 ton of copper and 2 tons of lead and costs $15,000. If the foundry needs at least 21/2 tons of copper and at least 4 tons of lead per day for the foreseeable future, how many railroad cars of scrap should be purchased per day from Source A and Source B to minimize the long-range scrap metal cost?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 7 images
- 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.Lemingtons is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation 100. The contract between Jean Hudson and Lemingtons works as follows. At the beginning of the season, Lemingtons reserves x units of capacity. Lemingtons must take delivery for at least 0.8x dresses and can, if desired, take delivery on up to x dresses. Each dress sells for 160 and Hudson charges 50 per dress. If Lemingtons does not take delivery on all x dresses, it owes Hudson a 5 penalty for each unit of reserved capacity that is unused. For example, if Lemingtons orders 450 dresses and demand is for 400 dresses, Lemingtons will receive 400 dresses and owe Jean 400(50) + 50(5). How many units of capacity should Lemingtons reserve to maximize its expected profit?Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 Of the four categories of variables, which one seems to be the most central to Ski Butternuts segmentation strategy, and why?
- Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 What role do geographic variables play in Ski Butternuts segmentation and targeting?Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 How is Ski Butternut applying behavioristic variables in its segmentation strategy? Explain your answer.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 Fish House (TFH) in Norfolk, Virginia, sells fresh fish and seafood. TFH receives daily shipments of farm-raised trout from a nearby supplier. Each trout costs $2.45 and is sold for $3.95. To maintain its reputation for freshness, at the end of the day TFH sells any leftover trout to a local pet food manufacturer for $1.25 each. The owner of TFH wants to determine how many trout to order each day. Historically, the daily demand for trout is: Demand 10 11 12 13 14 15 16 17 18 19 20 Probability 0.02 0.06 0.09 0.11 0.13 0.15 0.18 0.11 0.07 0.05 0.03 a. Construct a payoff matrix for this problem. b. How much should the owner of TFH be willing to pay to obtain a demand forecast that is 100% accurate? give a clear explanation for (b)Boston Company use a special part in manufacturing of its finished products. The unit cost thisspecial part is $ 35, and details of its manufacturing cost is as follows. The $35 unit productcost of this part is based on average 25,000 number of parts produced each year.An outside supplier has offered to supply the 25,000 parts at a cost of $30 per part. The specialequipment used to manufacture the above part. This equipment can only be used formanufacturing of this part and if not used it has no resale value.The total amount of general factory overhead, which is allocated based on direct labor-hours,would be unaffected by this decision because it is fixed cost..Suggest the management whether to stop producing internally and buy them from theoutside supplier?Description CAD Direct Materials 10Direct Labor 6Variable overheads…
- Western Chassis produces high-quality polished steel and aluminum sheeting and two lines ofindustrial chassis for the rack mounting of Internet routers, modems, and other telecommunicationsequipment. The contribution margin (contribution toward profit) for steel sheeting is $0.40 per poundand for aluminum sheeting is $0.60 per pound. Western earns $12 contribution on the sale of aStandard chassis rack and $15 contribution on a Deluxe chassis rack. During the next productioncycle, Western can buy and use up to 25,800 pounds of raw unfinished steel either in sheeting or inchassis. Similarly, 20,400 pounds of aluminum are available. One standard chassis rack requires 16pounds of steel and 8 pounds of aluminum. A Deluxe chassis rack requires 12 pounds of each metal.The output of metal sheeting is restricted only by the capacity of the polisher. For the next productioncycle, the polisher can handle any mix of the two metals up to 4,000 pounds of metal sheeting. Chassismanufacture can be…HERO Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of pesos) depends on demand as follows: Demand Demand Demand Staffing Options High Medium Low Own staff 352 325 300 Outsider vendor 450 300 150 Combination 400 325 250 If the decision maker knows nothing about the probabilities of the four states of nature, what is the recommended decision using:i. the optimistic approach and the conservative approach iii. the minimax regret approach iv. the Laplace methodSarasota Go Karts (SGK) is a firm that manufactures racing go-karts (fictitious) in Sarasota Florida. They produce a low-volume, premium product used by those who race go-karts. In total, they produce and sell around 300 go-karts per year. They offer five different models, although some further customization can be added upon request. They sell their products directly to the consumer, who can visit their small showroom at their manufacturing plant if they are in the area. However, the majority of go-kart orders are placed via their website or the phone, and are then shipped to the customer. Over the years, SGK has ran into a number of problems. First is their inventory levels. Their finished goods inventory is substantial, at any one time they have between 250-300 finished go-karts on hand. This is because they want to have an inventory of all five go-kart models on hand at any point in time, and they produce each model in a batch of 50 units at a time. They also have substantial work…