Currently they have 5 refrigerated trucks and planning to expand as market for their services is on the rise. The fixed cost of their operations is $1,200,000 per year covering managerial, administrative, insurance, and other related expenses at their headquarters. Every truck has approximately $100,000 annual expense for lease, maintenance, and insurance. The variable cost of operation f
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on the rise. The fixed cost of their operations is $1,200,000 per year covering managerial,
administrative, insurance, and other related expenses at their headquarters. Every truck has
approximately $100,000 annual expense for lease, maintenance, and insurance. The variable
cost of operation for each truck is $3.50 per mile covering fuel and truck driver’s pay. The
maximum mileage capacity of each truck is 200,000 miles per year and current demand is
1,000,000 miles per year. The company charges $10.00 per mile for a fully loaded truck
shipment. Construct an Excel cross tabulation table to find profit for this company using 6 to 14
trucks and mileage demand of 1,000,000, 1,500,000, 2,000,000, 2,500,000, 3,000,000, and
3,500,000 miles per year. Based on the table find the optimal number of trucks needed for above
listed mileage demands.
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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?. The Newcoat Painting Company has for some time been experiencing high demand for its automobile repainting service. Because it has had to turn away business, management is concerned that the limited space available to store cars awaiting painting has cost them in lost revenue. A small vacant lot next to the painting facility has recently been made available for rental on a long-term basis at a cost of $10 per day. Management believes that each lost customer costs $20 in profit. Current demand is estimated to be 21 cars per day with exponential interarrival times (including those turned away), and the facility can service at an exponential rate of 24 cars per day. Cars are processed on a FCFS basis. Waiting space is now limited to 9 cars but can be increased to 20 cars with the lease of the vacant lot.Newcoat wants to determine whether the vacant lot should be leased. Management also wants to know the expected daily lost profit due to turning away customers if the lot is leased. Only…
- Jefferson Company’s demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week 6,106 minutes Machine time available per week 8,600 minutes Actual run rate this week 4.32 units per minute Ideal run rate 6.00 units per minute Defect-free output this week 11,315 units Total output this week (including defects) 15,500 units 1. Compute the utilization rate.2. Compute the efficiency rate. 3. Compute the quality rate. 4. Compute the overall equipment effectiveness (OEE).Alma has decided to purchase a cell phone with Internetaccess and must choose a rate plan. The “occasional-user”plan is $0.50/minute, regardless of how many minutes ofair time are used. The “frequent-user” plan charges a flatrate of $55/month for 70 minutes of air time plus $0.33/minute for any time over 70 minutes. The “execu-tive” plan charges a flat fee of $75 per month for 100 minutes of air time plus $0.25/minute over 100 minutes. Inthe interest of simplicity, Alma has decided to go with theoccasional-user plan to start with and then upgrade as shesees fit at a later date.a. How much air time per month would Alma need touse before she upgrades from the occasional-user planto the frequent-user plan?b. At what usage rate should she switch from thefrequent-user plan to the executive plan?De Mar, a plumbing, heating, and air-conditioning companylocated in Fresno, California, has a simple but powerful product strategy: Solve the customer’s problem no matter what, solvethe problem when the customer needs it solved, and make sure thecustomer feels good when you leave . De Mar offers guaranteed,same-day service for customers requiring it. The company provides 24-hour-a-day, 7-day-a-week service at no extra charge forcustomers whose air conditioning dies on a hot summer Sundayor whose toilet overflows at 2:30 A.M. As assistant service coordinator Janie Walter puts it: “We will be there to fix your A/C onthe fourth of July, and it’s not a penny extra. When our competitors won’t get out of bed, we’ll be there!”De Mar guarantees the price of a job to the penny before thework begins. Whereas most competitors guarantee their work for30 days, De Mar guarantees all parts and labor for one year. Thecompany assesses no travel charge because “it’s not fair to chargecustomers for…
- Undertone Boating and Marine supports retail boat and water craft centers on the east coast by supplying them with quality power-boat and sailboat parts such as motors, oil filters, bildge pumps, boat covers, etc. The company’s 140 sales representatives work exclusively in the field visiting client company locations and submitting sales orders from laptop computers via an Internet connection to the corporate offices in Delaware. All of Undertone’s sales orders are received in this manner. Customer account, sales history, inventory, and cash receipts records are stored on a central server at the corporate site. Customers are billed digitally from the corporate office on a net 30 basis. Required: Outline the access controls that would be appropriate for this situation. Explain why these controls are necessaryThe Amberssen Specialty Company is a chain of 12 retail stores that sell a variety of imported gift items, gourmet chocolates, cheeses, and wines in the Toronto area. Amberssen has an IS staff of three people who have cre- ated a simple, but effective, information system of networked point-of-sale registers at the stores, and a cen- tralized accounting system at the company headquarters. Harry Hilman, the head of Amberssen’s IS group, hasjust received the following memo from Bill Amberssen, Sales Director (and son of Amberssen’s founder): Harry—It’s time Amberssen Specialty launched itself on the Internet. Many of our competitors are already there, selling to customers without the expense of a retail storefront, and we should be there too. I project that we could double or triple our annual revenues by selling our products on the Internet. I’d like to have this ready by Thanksgiving, in time for the prime holiday gift-shopping season. Bill Make an case studyFeVer Beverages is a typical coffee shop that operates at Batangas. Recently, the general manager is facing a challenge about not meeting their target lead time of serving the hot coffee of 15 minutes. The lead time starts from order taking until order serving. The staffing model of the shop has one cashier, one barista and a guard. The number of staff, equipment, and raw materials have been found sufficient. Based on the initial data analysis, the volume of customers has been stable. Because there is a need for the lead time to improve as to retain its customers and to even grow, a problem-solving effort has been started using the Lean Six Sigma DMAIC approach. Using the FEVER Beverages, you should create your own Project Charter and SIPOC Diagram.
- A steel production plant manufactures bands and coils which sell at a profit of $25 and $30 per ton,respectively. The production rate of the plant for bands is 200 tons/hr, and that for coils is 140 tons/hr.Based on the market analysis, it has been identified that the weekly demand is at most 6000 tons and4000 tons for bands and coils, respectively . The plant operates for a maximum of 40 hours per week. 1. In Microsoft Excel, formulate a linear programming model instance for this problem, then solve. 2. Assume that the products need to be painted after manufacturing, and the painting departmentcan paint at a rate of 600 tons per hour for bands and 400 tons per hour for coils. The paintingdepartment works only for 20 hours. Update the linear programming model instance to accom-modate this requirement, and re-solve the problem. 3. The plant is planning to introduce another product “rods” to its production mix with the followingparameters:•Profit/ton = $40•Production volume = 150…Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of this size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will requrie that the ovens be, loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,600 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $700 and a per loaf ingredient cost of $0.50. Current multifactor productivity for 640 work hours per month= .242 loaves/dollar (round your response to three decimal places). After increasing…Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 5555% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,800 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $800 and a per loaf ingredient cost of $0.35 Current multifactor productivity for 640 work hours per month =0.27loaves/dollar (round your response to three decimal places).