Butt Engineering Works (BEW), located in Multan, is a major manufacturer of air coolers supplying air coolers to Multan and its suburbs. BEW is in the middle of the demand and supply planning exercise for the coming year. Capacity at (BEW) is governed by the number of machine operators it hires. The firm works on average 25 days a month, with a regular operating shift of eight hours per day. Any time more than that is considered overtime. Overtime is limited to 20 hours per month per employee. Each air cooler requires 4 hours of labor input. The selling price of a cooler is Rs.10,000/- per unit. Cost of required material for a complete cooler is Rs.5000/-. The air cooler season lasts from March to August. The challenging job in this Sales and Operation Planning question is that you have to write reasonable prices and expected demand figures from your own knowledge and judgement and then have to prepare the plan and solve it. You cannot copy figures from any question given in the textbook. (This is only to control your unfair means in online examination), Requirements: 1. First of all write the following reasonable prices/rates as per context of Multan. 1212 Regular-time wage per day for technical worker: Overtime wage per day for technical worker: No. of initial Employees at plant: Carrying cost for an air cooler for a month. Starting inventory in March : Desired ending inventory September: No stockouts are allowed. 2. Then prepare the following anticipated monthly demand table for the season this year (the demand each month should be between greater than 1000 Demand Month March April May June July August Institute of Management Sciences Bahauddin Zakariya University, Multan Market research has indicated that a promotion dropping prices by 1 percent in a given month will increase sales in that month by 20 percent and bring forward 10 percent demand from each of the following two months. Thus, a I percent drop in price in March increases sales in March. The main requirement is to prepare possible production plan for the year no promotions and calculate the seasonal profit cost. Your plan should be feasible, not necessarily optimal Butt Engineering Works (BEW), located in Multan, is a major manufacturer of air coolers supplying air coolers to Multan and its suburbs. BEW is in the middle of the demand and supply planning exercise for the coming year. Capacity at (BEW) is governed by the number of machine operators it hires. The firm works on average 25 days a month, with a regular operating shift of eight hours per day. Any time more than that is considered overtime. Overtime is limited to 20 hours per month per employee. Each air cooler requires 4 hours of labor input. The selling price of a cooler is Rs.10,000/- per unit. Cost of required material for a complete cooler is Rs.5000/-. The air cooler season lasts from March to August. The challenging job in this Sales and Operation Planning question is that you have to write reasonable prices and expected demand figures from your own knowledge and judgement and then have to prepare the plan and solve it. You cannot copy figures from any question given in the textbook. (This is only to control your unfair means in online examination), Requirements: 1. First of all write the following reasonable prices/rates as per context of Multan. 1212 Regular-time wage per day for technical worker: Overtime wage per day for technical worker: No. of initial Employees at plant: Carrying cost for an air cooler for a month. Starting inventory in March : Desired ending inventory September: No stockouts are allowed. 2. Then prepare the following anticipated monthly demand table for the season this year (the demand each month should be between greater than 1000 Demand Month March April May June July August Institute of Management Sciences Bahauddin Zakariya University, Multan Market research has indicated that a promotion dropping prices by 1 percent in a given month will increase sales in that month by 20 percent and bring forward 10 percent demand from each of the following two months. Thus, a I percent drop in price in March increases sales in March. The main requirement is to prepare possible production plan for the year no promotions and calculate the seasonal profit cost. Your plan should be feasible, not necessarily optimal