Show how the expected profits and order quantities for range

Assignment Help Operation Management
Reference no: EM132280924

Discussion :

You have been hired by a vendor who is preparing for an upcoming K-Pop (Korean pop music) concert featuring the singer IU (Lee Ji-eun) in Cincinnati.

The concert organizer is allowing vendors to sell IU paraphernalia. You determine that certain one-size-fits-all winter hats featuring IU's image will be sold. You have four choices for OEM suppliers of the hats.

Due to their locations, their lead times differ, along with your costs. Based on past concerts, the product sales forecast is for 3000 hats, but this estimate is uncertain depending on the concert attendance. Each hat will sell for $32.

Once the concert ends, products not sold will be bought by a discounter at a heavily reduced price of $2.40 per hat. Sales forecasts will be more accurate as the concert approaches (forecast CV's are available based on past forecasting performance). Production quality varies according to location, which is expressed as an expected production yield.

Production costs are adjusted to account for these yields (and shown below as net product cost). Because the products all require careful handling, there will be an inventory holding cost that will apply as soon as the order is placed. However, the annual holding percentage is unknown at this time. The table below summarizes the important information regarding the locations under consideration.

Create a spreadsheet that determines, for each manufacturing location, the expected profits and how many units the vendor should order from each manufacturer.

Assume that demand variation is normally distributed. Vary the annual holding cost percentage and show how the expected profits and order quantities for a range of holding rates from 10% to 40%.

Show these results in tabular and graphical form. Clearly organize and label the spreadsheet to show inputs and results (i.e., a user may wish to modify inputs later as more information becomes available). The assessment of this work will be based on the accuracy and clarity of your spreadsheet.

Reference no: EM132280924

Opening the business as sole proprietorship and franchise

Mark plans to open a barbeque restaurant. He can either open the business as a sole proprietorship or obtain a franchise for “Smokin’ Hot Bar-B-Q”. Compare and contrast the ad

What is the maximum loan you can acquire for the property

A shopping centre is available for purchase for $8 million. The lender agrees this is a fair value for the property. There is 70 000 sq ft of rentable area in the building and

Describe in detail the types of raw materials

Pick any manufacturing industry with which you are familiar. Describe the industry and then describe in detail the types of raw materials, work in process, and finished good i

Assuming the capacity of the lift truck is one unit load

The route sheet for a part is as follows: A-F-E-D-C-B-A-F Two thousand pieces will flow through from the first machine A to the final machine F based on the given sequence of

Constructive feedback to person

In the past, you have had problems with this individual's ability to meet deadlines on teams you have worked on. How would you provide constructive feedback to this person

Employees level of job satisfaction or dissatisfaction

Motivation is a personality factor that determines an employee's level of job satisfaction or dissatisfaction. Motivation is the force acting on or within a person that cause

Cultural factors and unethical behavior

An organization socializes people. It subtly conveys to members that certain actions are acceptable, even though they are illegal. Assuming this is true, what would a culture

The senior management team of efficient network

The senior management team of Efficient Network HMO is evaluating the year-end data related to emergency room (ER) expenses. One physician group within the network had ER expe

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd