Golf-Sport is a small-sized company that produces high-quality components for people who build their own golf...

   

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Golf-Sport is a small-sized company that produces high-quality components for people who build their own golf clubs and prebuilt sets of clubs. There are five components-steel shafts, graphite shafts, forged iron heads, metal wood heads, and metal wood heads with titanium inserts-made in three plants Chandler, Glendale, and Tucson in the Golf-Sport system. Each plant can produce any of the components, although each plant has a different set of individual constraints and unit costs. These constraints cover labor and packaging machine time (the machine is used by all components); the specific values for each component-plant combination are given in Tables 1- 3. Note that even though the components are identical in the three plants, different production processes are used, and therefore the products use different amounts of resources in different plants. Besides component sales, the company takes the components and manufactures sets of golf clubs. Each set requires 13 shafts, 10 iron heads, and 3 wood heads. All of the shafts in a set must be the same type (steel or graphite), and all of the wood heads must be the same type (metal or metal with inserts). Assembly times for the sets at each plant are shown in Table 4. Each plant of Golf-Sport has a retail outlet to sell components and sets, and the specific plant is the only supplier for its retail outlet. The minimum and maximum amounts of demand for each plant-product pair are given in Table 5. Note that, although the minimums must be satisfied, you do not need to satisfy demand up to the maximum amount. This planning problem is for two months. The costs in Table 6 increase by 12% for the second month, and production times are stationary. Inventory costs are based on end-of-period inventory for each product set and cost out at 8% of the cost values in Table 6. Table 7 lists the revenue generated by each product. Initially, there is no inventory. The corporation controls the capital available for expenses; the cash requirements for each product are given in the last column of Tables 1-3. There is a total of $20,000 available for advertising for the entire system during each month, and any money not spent in a month is not available the next month. The corporation also controls graphite. Each shaft requires 4 ounces of graphite; a total of 1,000 pounds is available for each of the two months. Your job is to determine a recommendation for the company. A recommendation must include a plan for production and sales. In addition, you should also address the following sensitivity- analysis issues in your recommendation: • If you could get more graphite or advertising cash, how much would you like, how would you use it, and what would you be willing to pay? ▪ At what site(s) would you like to add extra packing machine hours, assembly hours, and/or extra labor hours? How much would you be willing to pay per hour and how many extra hours would you like? ▪ Marketing is trying to get Golf-Sport to consider an advertising program that promises a 50% increase in their maximum demand. Can we handle this with the current system or do we need more resources? How much more is the production going to cost if we take on the additional demand? Table 1: Product-Resource Constraints: Chandler Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Titanium insert heads Monthly availability (minutes) Table 2: Product-Resource Constraints: Glendale Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Labor (Minutes/Unit) 1 1.5 1.5 3 4 12,000 Titanium insert heads Monthly availability (minutes) Labor (Minutes/Unit) 3.5 3.5 4.5 4.5 5.0 15,000 Resources Packing (Minutes/Unit) 4 4 5 6 6 20,000 Resources Packing (Minutes/Unit) 7 7 8 9 7 40,000 Advertising ($/Unit) 1 1.5 1.1 1.5 1.9 Advertising ($/Unit) 1.1 1.1 1.1 1.2 1.9 - Table 3: Product-Resource Constraints: Tucson Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Titanium insert heads Monthly availability (minutes) Table 4 Plant Chandler Glendale Tucson Labor (Minutes/Unit) 3 3.5 4 4.5 5.5 22,000 Time (Minutes per set) 65 60 65 Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Titanium insert heads Set: Steel, metal Set: Steel, insert Set: Graphite, metal Set: Graphite, insert Chandler [0,2000] [100,2000] [200,2000] Resources Table 5: Minimum and Maximum Product Demand per Month Store (or Plant) Glendale [0,2000] [100,2000] [200,2000] [30,2000] [100,2000] [0,200] [30,2000] [100,2000] [0,200] [0,100] [0,300] [0,400] Packing (Minutes/Unit) 7.5 7.5 8.5 9.5 8.0 35,000 Total Time Available (Minutes) 5500 5000 6000 [0,100] [0,300] [0,400] Advertising ($/Unit) 1.3 1.3 1.3 1.5 1.9 I Tucson [0,2000] [50,2000] [100,2000] [15,2000] [100,2000] [0,200] [0,100] [0,300] [0,400] Table 6: Material, Production, and Assembly Costs($) per Part or Set Plants Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Titanium insert heads Set: Steel, metal Set: Steel, insert Set: Graphite, metal Set: Graphite, insert Table 7: Revenue($) per Part or Set Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Chandler 6 Titanium insert heads Set: Steel, metal Set: Steel, insert Set: Graphite, metal Set: Graphite, insert 19 4 10 26 178 228 350 420 Chandler 10 25 8 18 40 290 380 560 650 Glendale 5 18 5 11 24 175 220 360 435 Plants Glendale 10 25 8 18 40 290 380 560 650 Tucson 7 20 5 12 27 180 240 370 450 Tucson 12 30 10 22 45 310 420 640 720 Golf-Sport is a small-sized company that produces high-quality components for people who build their own golf clubs and prebuilt sets of clubs. There are five components-steel shafts, graphite shafts, forged iron heads, metal wood heads, and metal wood heads with titanium inserts-made in three plants Chandler, Glendale, and Tucson in the Golf-Sport system. Each plant can produce any of the components, although each plant has a different set of individual constraints and unit costs. These constraints cover labor and packaging machine time (the machine is used by all components); the specific values for each component-plant combination are given in Tables 1- 3. Note that even though the components are identical in the three plants, different production processes are used, and therefore the products use different amounts of resources in different plants. Besides component sales, the company takes the components and manufactures sets of golf clubs. Each set requires 13 shafts, 10 iron heads, and 3 wood heads. All of the shafts in a set must be the same type (steel or graphite), and all of the wood heads must be the same type (metal or metal with inserts). Assembly times for the sets at each plant are shown in Table 4. Each plant of Golf-Sport has a retail outlet to sell components and sets, and the specific plant is the only supplier for its retail outlet. The minimum and maximum amounts of demand for each plant-product pair are given in Table 5. Note that, although the minimums must be satisfied, you do not need to satisfy demand up to the maximum amount. This planning problem is for two months. The costs in Table 6 increase by 12% for the second month, and production times are stationary. Inventory costs are based on end-of-period inventory for each product set and cost out at 8% of the cost values in Table 6. Table 7 lists the revenue generated by each product. Initially, there is no inventory. The corporation controls the capital available for expenses; the cash requirements for each product are given in the last column of Tables 1-3. There is a total of $20,000 available for advertising for the entire system during each month, and any money not spent in a month is not available the next month. The corporation also controls graphite. Each shaft requires 4 ounces of graphite; a total of 1,000 pounds is available for each of the two months. Your job is to determine a recommendation for the company. A recommendation must include a plan for production and sales. In addition, you should also address the following sensitivity- analysis issues in your recommendation: • If you could get more graphite or advertising cash, how much would you like, how would you use it, and what would you be willing to pay? ▪ At what site(s) would you like to add extra packing machine hours, assembly hours, and/or extra labor hours? How much would you be willing to pay per hour and how many extra hours would you like? ▪ Marketing is trying to get Golf-Sport to consider an advertising program that promises a 50% increase in their maximum demand. Can we handle this with the current system or do we need more resources? How much more is the production going to cost if we take on the additional demand? Table 1: Product-Resource Constraints: Chandler Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Titanium insert heads Monthly availability (minutes) Table 2: Product-Resource Constraints: Glendale Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Labor (Minutes/Unit) 1 1.5 1.5 3 4 12,000 Titanium insert heads Monthly availability (minutes) Labor (Minutes/Unit) 3.5 3.5 4.5 4.5 5.0 15,000 Resources Packing (Minutes/Unit) 4 4 5 6 6 20,000 Resources Packing (Minutes/Unit) 7 7 8 9 7 40,000 Advertising ($/Unit) 1 1.5 1.1 1.5 1.9 Advertising ($/Unit) 1.1 1.1 1.1 1.2 1.9 - Table 3: Product-Resource Constraints: Tucson Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Titanium insert heads Monthly availability (minutes) Table 4 Plant Chandler Glendale Tucson Labor (Minutes/Unit) 3 3.5 4 4.5 5.5 22,000 Time (Minutes per set) 65 60 65 Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Titanium insert heads Set: Steel, metal Set: Steel, insert Set: Graphite, metal Set: Graphite, insert Chandler [0,2000] [100,2000] [200,2000] Resources Table 5: Minimum and Maximum Product Demand per Month Store (or Plant) Glendale [0,2000] [100,2000] [200,2000] [30,2000] [100,2000] [0,200] [30,2000] [100,2000] [0,200] [0,100] [0,300] [0,400] Packing (Minutes/Unit) 7.5 7.5 8.5 9.5 8.0 35,000 Total Time Available (Minutes) 5500 5000 6000 [0,100] [0,300] [0,400] Advertising ($/Unit) 1.3 1.3 1.3 1.5 1.9 I Tucson [0,2000] [50,2000] [100,2000] [15,2000] [100,2000] [0,200] [0,100] [0,300] [0,400] Table 6: Material, Production, and Assembly Costs($) per Part or Set Plants Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Titanium insert heads Set: Steel, metal Set: Steel, insert Set: Graphite, metal Set: Graphite, insert Table 7: Revenue($) per Part or Set Products Steel shafts Graphite shafts Forged iron heads Metal wood heads Chandler 6 Titanium insert heads Set: Steel, metal Set: Steel, insert Set: Graphite, metal Set: Graphite, insert 19 4 10 26 178 228 350 420 Chandler 10 25 8 18 40 290 380 560 650 Glendale 5 18 5 11 24 175 220 360 435 Plants Glendale 10 25 8 18 40 290 380 560 650 Tucson 7 20 5 12 27 180 240 370 450 Tucson 12 30 10 22 45 310 420 640 720

Answer rating: 100% (QA)

To determine a recommendation for GolfSport lets step through the problem and calculate the production and sales plans based on the given information and constraints Step 1 Production Plan Well calcul... View the full answer