Question 1 Aggregate Planning (12 Marks) The Widget Acme Inc anticipates highly seasonal demand for their product, The Widget Their estimate of the demand profile and the costs for the managerial levers appear below Demand Forecast Month Demand Forecast January 1,000 February 1,300 March 1,800 April 2,500 May 2,000 June 1,200 Costs Item Cost Materials cost unit $400 Inventory holding cost unit month $25 Marginal cost of stockout unit month $50 Hiring and training cost worker $300 Layoff cost worker $500 Labor hours required unit 4 Regular time cost hour $150 Over time cost hour $200 Marginal subcontracting cost unit $300 Please complete the Excel spreadsheets as requested in the questions Please response in this MS Word document (1 Marks) How can a firm can respond to predictable variability of demand in the supply chain In your response, discuss the primary supply side levers that are managed (Hintas a manufacturer, what are your decisions) (3 Marks Excel File) With the use of the Excel Workbook and the solver function, complete the cost analysis for the given the information provided above (Please hand in your excel file) Please determine the following (1 Mark) What is the optimal production plan (1 Mark) What is the profit from this plan (1 Mark) What is the cost of the plan (2 Mark) Would you plan to increase or decrease your employee base What impact might this decision have on your employee base (2 points) The Company decides to train all staff in December at a cost of $10,000 to the company The benefit of the trainingthe number of labour hours unit is reduced from 4 hours to 3 hours (1 Mark) What is the profit from this revised plan (1 Mark) What is the cost of the revised plan (1 Mark) Given the cost of production is lower, what impact could this have on sales and demand How Question 2 Sales Operations Planning (8 Marks) (4 Marks) Describe the impact of trade promotions periods (Peak, off peak) on cycle inventory Use excel file from question 1 to justify the results Hint use the solver to calculate the effect of a promotion on two different periods (2 Marks) Discuss the role of safety inventory in the supply chain and the trade offs involved (2 Marks) Explain 2 approaches a manager can use to reduce demand uncertainty Question 3 Supply Chain Coordination (6 Marks) (2 Marks) Explain with an example how lack of coordination impacts the bullwhip effect (2 Marks) What are the most important levers that can help achieve coordination in the supply chain (2 Marks) Explain with an example how Collaborative planning, Forecasting and Replenishment can help achieve Supply chain coordination Question 4 Case Inventory (15 Marks) TOFFEE INC DEMAND PLANNING FOR CHOCOLATE BARS Case Questions (2 Marks) What is the safety stock to be maintained by the sales and distribution division for a service level of 95 per cent (2 Marks) What are the replenishment triggers (re order level) for the sales and distribution division with the given lead time and expected service levels (3 Marks) What is the most economic order quantity for the sales and distribution division Compute the number of orders per year and the order cycle as well (2 Marks) What is the total annual inventory cost (6 Marks) What is the best quantity bargain for the firm for various primary ingredients How are the purchase quantity levels decided and what is the total cost outlay for the same

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Question: Question 1: Aggregate Planning (12 Marks) The Widget... Acme Inc. anticipates highly seasonal demand for their product, The Widget. Their estimate of the demand profile

Question 1: Aggregate Planning (12 Marks)

The Widget...

Acme Inc. anticipates highly seasonal demand for their product, "The Widget". Their estimate of the demand profile and the costs for the managerial levers appear below.

Demand Forecast

Month	Demand Forecast
January	1,000
February	1,300
March	1,800
April	2,500
May	2,000
June	1,200

Costs

Item	Cost
Materials cost/unit	$400
Inventory holding cost/unit/month	$25
Marginal cost of stockout/unit/month	$50
Hiring and training cost/worker	$300
Layoff cost/worker	$500
Labor hours required/unit	4
Regular time cost/hour	$150
Over time cost/hour	$200
Marginal subcontracting cost/unit	$300

Please complete the Excel spreadsheets as requested in the questions. Please response in this MS Word document.

(1 Marks) How can a firm can respond to predictable variability of demand in the supply chain. In your response, discuss the primary supply side levers that are managed (Hintas a manufacturer, what are your decisions).
(3 Marks- Excel File) With the use of the Excel Workbook and the solver function, complete the cost analysis for the given the information provided above (Please hand in your excel file)
Please determine the following:
1. (1 Mark) What is the optimal production plan?
2. (1 Mark) What is the profit from this plan?
3. (1 Mark) What is the cost of the plan?
4. (2 Mark) Would you plan to increase or decrease your employee base? What impact might this decision have on your employee base (2 points)

The Company decides to train all staff in December at a cost of $10,000 to the company. The benefit of the trainingthe number of labour hours/unit is reduced from 4 hours to 3 hours.
1. (1 Mark) What is the profit from this revised plan?
2. (1 Mark) What is the cost of the revised plan?
3. (1 Mark) Given the cost of production is lower, what impact could this have on sales and demand? How?

Question 2: Sales & Operations Planning (8 Marks)

(4 Marks) Describe the impact of trade promotions periods (Peak, off-peak) on cycle inventory. Use excel file from question 1 to justify the results.

Hint:use the solver to calculate the effect of a promotion on two different periods.

(2 Marks) Discuss the role of safety inventory in the supply chain and the trade-offs involved.
(2 Marks) Explain 2 approaches a manager can use to reduce demand uncertainty.

Question 3: Supply Chain Coordination (6 Marks)

(2 Marks) Explain with an example how lack of coordination impacts the bullwhip effect?
(2 Marks) What are the most important levers that can help achieve coordination in the supply chain?
(2 Marks) Explain with an example how Collaborative planning, Forecasting and Replenishment can help achieve Supply chain coordination?

Question 4: Case Inventory; (15 Marks)

TOFFEE INC.: DEMAND PLANNING FOR CHOCOLATE BARS

Case Questions

(2 Marks) What is the safety stock to be maintained by the sales and distribution division for a service level of 95 per cent?
(2 Marks) What are the replenishment triggers (re-order level) for the sales and distribution division with the given lead time and expected service levels?
(3 Marks) What is the most economic order quantity for the sales and distribution division? Compute the number of orders per year and the order cycle as well.
(2 Marks) What is the total annual inventory cost?
(6 Marks) What is the best quantity bargain for the firm for various primary ingredients? How are the purchase quantity levels decided and what is the total cost outlay for the same?

Question: Question 1: Aggregate Planning (12 Marks) The Widget... Acme Inc. anticipates highly seasonal demand for their product, The Widget. Their estimate of the demand profile

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