David Baldwin: Attempt 1 Question 27 (2 points) The Tuna Colada A fishing consortium anticipates highly seasonal demand for their product yellowtail tuna steaks that can be made into the new drink sensation, the tuna colada. Their estimate of the demand profile appears below. This forecast is based on the demand profile of last year's drink, the okra colada with one key difference. The tuna colada is being positioned as a healthier alternative to eggnog, so demand is expected to climb throughout the planning period with a peak in December Demand Forecast Month July 1,560 August 2,200 September 2,850 October 3,440 November 4,020 December 5,280 The costs for the managerial levers appear in this table. Item Cost Materials cost/unit $10 The Tuna Colada A fishing consortium anticipates highly seasonal demand for their product, yellowtail tuna steaks that can be made into the new drink sensation, the tuna colada. Their estimate of the demand profile appears below. This forecast is based on the demand profile of last year's drink, the okra colada with one key difference. The tuna colada is being positioned as a healthier alternative to eggnog, so demand is expected to climb throughout the planning period with a peak in December. Month Demand Forecast July 1,560 August 2,200 September 2,850 October 3,440 November 4,020 December 5,280 The costs for the managerial levers appear in this table. Item Cost Materials cost/unit $10 Inventory holding cost/unit/month $4 Marginal cost of stockout/unit/month $12 Hiring and training cost/worker $200 Layoff cost/worker $800 Labor hours required/unit 3 Regular time cost/hour $16 Over time cost/hour $24 Period beginning inventory equals 0 Period ending inventory equals 0 Marginal subcontracting cost/unit $80 The base price per tuna colada is $75 and there is currently no promotion, hence, no forward buying, but management is seriously considering different promotional plans. The beginning workforce level is 80 employees. Suppose a promotion in month 1 results in 10% consumption and a 20% forward buy. What is the maximum profit possible throughout the planning period? 0-$11,588 $15,974 $23,462 O-$17,548