Digging though the financials and connecting the dots

Assignment Help Operation Management

Reference no: EM132264703

Quantity Discounts Regardless of the variation of Duff beer, Duff is always sold in a 12 oz can. Duff has been purchasing manufactured cans for each of its beers from the Aluminati at the quantity discount price below. However, after digging though the financials and connecting the dots, you are beginning to think the Aluminati may be a conspiracy. Recently you have contacted Aluminate who are eager for your business they have quoted you the competitive prices shown below.

Use the forecast model previously chose (Linear trend forecasting method)

as the best predict sales for year 9 and order the appropriate number of cans. You may find the conversion chart handy

1 Barrel = 31 Gallons = 248 pints = 330 12 oz cans

Quanity Aluninati Price Aluminate

500,000-999,999 0.75 0.7

1,000,000-1,999,999 0.67 0.62

2,000,000 - 2,999,999 0.59 0.54

3,000,000 - 3,999,999 0.51 0.46

4,000,000 - 4,999,999 0.43 0.44

5,000,000 - 5,999,999 0.35 0.4

6,000,000 - 6,999,999 0.27 0.27

7,000,000 - 7,999,999 0.19 0.19

8,000,000 - 8,999,999 0.11 0.11

9,000,000 - 9,999,999 0.03 0.03

Holding Cost per can $0.01 $0.02

Delivery Cost per trip $800 $780

use liner trend forecasting

Reference no: EM132264703

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