Question:

Write down answers from (a) to (o) in the box below.

Information Flag question Planning Values City Soda Pop, Inc., has a new fruit drink for which it has high hopes. Assumed you are the production planner, you have assembled the following demand forecast and cost data: Quarter Forecast 1 1,800 2 1,100 3 1,600 4 900 Costs / Other Data: Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost = $150 per case Inventory holding cost = $40 per case at end of quarter Hiring employees = $40 per case Terminating employees = $80 per case Subcontracting cost = $60 per case Unit cost on regular time = $30 per case Overtime cost = $15 extra per case Capacity on regular time = 1,800 cases per quarter Question 6 Your job is to develop a sales and operations plan (S&OP). The three initial options you want to evaluate are: Plan A: a chase strategy that hires and fires personnel as necessary to meet the forecast Quarter Forecast Regular Time Production Hiring Terminating (a) (b) 1 2 3 4. Total Cost 1,800 1,100 1,600 900 (d) Total Cost: (e) Plan B: a level strategy Quarter Forecast Ending Regular Time Inventory (+)/ Production Stockout (-) Hiring Terminating 1.800 (g) Plan B: a level strategy Ending Regular Time Quarter Forecast Inventory (+)/ Hiring Production Terminating Stockout (-) 1 1,800 2 1,100 (h) 3 1,600 4 900 Total Cost Total Cost: (i) Plan C: a level strategy that produces 1,200 cases per quarter and meets the forecasted demand with subcontracting Quarter Forecast Regular Time Production (k) Subcontract Production Ending Inventory Hiring Terminating (1) 1 2 3 4 Total Cost 1,800 1,100 1,600 900 (m) Total Cost: (0) Write your answers from (a) to (o) in the box below