There are three models with sales as in Table 1 that are returned and remanufactured into utility
Question:
There are three models with sales as in Table 1 that are returned and remanufactured into utility models. The demand for 2020 is for 150K units.
Table 1. Sales in 000
Year | M1 | M2 | M3 |
2019 | 100 | 75 | 50 |
2018 | 120 | 89 | 51 |
2017 | 90 | 100 | 47 |
2016 | 80 | 90 | 45 |
The EoL/EoU time frames and rates are the same for all models. After 1 year 5% are returned, 2 years: 35%, 3 years: 40%, and 4 years 20%. The overall return rates are based on the incentives. The incentives is the same for all models and four levels are considered.
Incentive | M1 | M2 | M3 |
none | 15% | 15% | 15% |
$10 | 30% | 35% | 40% |
$20 | 45% | 50% | 55% |
$30 | 50% | 55% | 60% |
Remanufacturing costs are $25 per unit regardless of the model. New units are $70 each.
Develop a tool in Excel that will calculate the forecast and costs under the 4 incentive levels. The Excel file should have a results table in this format:
Incentive | Units Returned | Incentive $ | Reman $ | New Items $ | Total $ |
$ - | |||||
$ 10.00 | |||||
$ 20.00 | |||||
$ 30.00 |
Fundamentals of Physics
ISBN: 978-0471758013
8th Extended edition
Authors: Jearl Walker, Halliday Resnick