What is the total cost using the chase demand plan

Assignment Help Operation Management

Reference no: EM132234754

Professor Eberhard's Log Bed trial with Costco went extremely well. He gained the full business for all Costco stores Nation Wide. He is rolling in money. However, he is greedy, and wants to make even more money. Therefore, he has now built a new production line to build Metal beds.

Based on his past success, Costco has awarded the Professor another Pilot program for Metal beds, this time in the following stores: Los Angelos, Sacramento, Miami, and New York City.

Once again, Costco will not give Professor Eberhard a firm forecast. They will put an initial quantity of 10 beds in each of the pilot stores, and then order more as those are sold.

Using the same Sam's Club data as before ), the Professor would like to create a forecast for his new Costco contract.

Professor Eberhard asks that you help him to determine a proper forecast, as well as a product scheduling strategy. You can do this by doing the following:

Utilize the Sales History found in the "SAMs Bed Sales History" tab of the provided excel file (DATA FOR EXAM 2 FILE FOUND IN D2L). Create a pivot table to help you easily pull the 12 month history, of 2017 sales, at the pilot stores. – Make sure you use the forecast for the relevant bed type only.

Take the total sales history of those 4 stores in 2015 and use that as your Demand in the "Agg Plan – Level vs Chase" tab. Along with this demand, use the following cost and production rate information to analyze what would be more cost effective, a level plan or a chase plan:

Production Cost $78

Inventory Holding Cost $4.35

Lost Sales $330

Overtime Costs $25

Undertime Cost $10

Rate Change Cost $32

Normal Production Rate 170

Ending Inventory (Or beginning) 40

Answer the following:

What is the Total Cost using the Level Loaded Plan?

What is the Total Cost using the Chase Demand Plan?

Reference no: EM132234754

Questions Cloud

What is meant by respondeat superior : What is meant by “respondeat superior” and how and when does it apply in the law of agency?

Electronic human resource management applications : Which of the following is true of electronic human resource management (e-HRM) applications? Cost-efficient supply chains...

Calculate chelsea debt payment-to-disposable income : (a) Calculate Chelsea's debt payment-to-disposable income and debt-service-to-income ratios.

Option premium and an option price : What is the difference between an option premium and an option price?

What is the total cost using the chase demand plan : What is the Total Cost using the Level Loaded Plan? What is the Total Cost using the Chase Demand Plan?

How important are management meetings : How important are management meetings? Who are expected to participate?

Design specifications require that key dimension on product : Design specifications require that a key dimension on a product measure 238 ± 10. What can you say (Quantitatively) regarding the process capability?

Transparency and competition on rating agencies models : Do you think there is a need for increased transparency and competition on Rating Agencies Models?

What is the ask price of the british pound : What is the ask price of the British pound in the three-month forward market? Keep six digits after the decimal point.

User Account

All Pages