What information should be shared with various partners

Assignment Help Operation Management

Reference no: EM13252867

The EGAD Bottling Company has decided to introduce a new line of premium bottled water that will include several "designer" flavors. Marketing manager Georgianna Mercer is predicting an upturn in demand based on the new offer and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months, as shown in the following table (quantities are in tankloads): Month May June Jul Aug Sept Oct Total Forecast 50 60 70 90 80 70 420 Production manager Mark Mercer (no relation to Georgianna Mercer) has developed the following information. (costs are in thousands of dollars) Regular production cost $1 per tankload Regular production capacity 60 tankloads Overtime production cost $1.6 per tankload Subcontracting cost $1.8 per tankload Holding cost $2 per unit per tankload per month Back ordering cost $5 per month per tankload Beginning inventory 0 Among the strategies being considered are the following: 1. Level production supplemented by up to 10 tankloads a month from overtime. 2. A combination of overtime, inventory, and subcontracting. 3. Using overtime for up to 15 tankloads a month, along with inventory to handle variations. Questions 1. The objective is to choose the plan that has the lowest cost. Which plan would you recommend? 2. Presumably, information about the new line has been shared with supply chain partners. Explain what information should be shared with various partners, and why sharing that information is important.

Reference no: EM13252867

Questions Cloud

Create and test a function called celsius to convert temp : Create and test a function called celsius to convert degrees Celsius to degrees Fahrenheit. The equation for converting temperatures in Celsius to Fahrenheit is T_f=9/5 T_c+32 Display the results as a conversion table for six different temperature..

Recognize the problems inherent in managing change : Recognize the problems inherent in managing change and the obstacles that must be overcome.

How far away is the tree : A tall tree is growing across a river from you. You would like to know the distance between yourself and the tree,as well as its height, How far away is the tree?

Compute the amount of heat energy in joules : Calculate the amount of heat energy in joules required to heat 50.0g of each substance from 25.0 c to 37.0 c

What information should be shared with various partners : Which plan would you recommend? 2. Presumably, information about the new line has been shared with supply chain partners. Explain what information should be shared with various partners, and why sharing that information is important.

What voltage is present across the tracks : A model-train transformer plugs into 120-V ac, What voltage is present across the tracks

Calculate temperature of parcel-source of heat energy : Calculate the temperature of the parcel at the following elevation as it rises up the windward side of the mountain. Why is the parcel now warmer than it was at sea level on the windward side (What is the source of the heat energy)?

Determine particular password assuming that testing password : If passwords are three uppercase alphabetic characters long, how much time would it take to determine a particular password, assuming that testing an individual password requires 5 seconds

Explain what color will potassium burn in a flame : Silver and Gold are exceptions to the rule for transition metals and charge. What is the charge of gold and silver. What color will potassium burn in a flame

User Account

All Pages