### Production Strategy QuestionnaireThis interactive module helps explore different production strategies and their associated costs. Review each question and select the appropriate options from the dropdown menus.#### a. Level Strategy- **Question:** Produce utilizing a **level strategy** at 180 units, where the company incurs regular time production costs, inventory charges, and any costs due to the change in the production level from the previous output level. What is the cost of this strategy? - **Answer Selection:** [Dropdown menu]#### b. Back-order Requirement- **Question:** Was there a need to back-order? If so, how many units? - **Answer Selection:** [Dropdown menu]#### c. Mixed Strategy- **Question:** Produce utilizing a **mixed strategy** by producing 160 units every month. Then, utilize overtime and subcontracting to meet demand. (*Don't forget the capacity limitations on overtime and subcontracting.*) What is the cost of this strategy? - **Answer Selection:** [Dropdown menu]#### d. Overtime Costs- **Question:** Based on the mixed strategy, what was the cost of utilizing overtime? - **Answer Selection:** [Dropdown menu]#### e. Varying Workforce- **Question:** Based on a strategy of **varying the workforce** (Chase), what is the total cost? - **Answer Selection:** [Dropdown menu]#### f. Cost-Effective Strategy- **Question:** Which strategy provides the lowest cost solution? - **Answer Selection:** [Dropdown menu]This questionnaire is designed to help you understand and analyze the financial implications of different production strategies in a business setting. **ABC Wash, Inc. Production Planning Case Study****Context:**ABC Wash, Inc. manufactures commercial and industrial laundry machines, primarily used by hotels. The company faces the following monthly aggregate demand for the next six months: - Month M1: 220 units- Month M2: 195 units- Month M3: 210 units- Month M4: 212 units- Month M5: 230 units- Month M6: 205 unitsThe firm has a regular production capacity of 200 units per month and an overtime capacity of 20 units. Currently, subcontracting can supplement this with up to 40 additional units per month, but the availability of this option may change.Previous production output was 150 units with an inventory starting at 100 units.**Cost Information:**- Back-Ordering: $250 per unit per month- Inventory Holding: $100 per unit at the end of the month- Regular Time Production: $1,200 per unit- Subcontracting: $2,000 per unit- Overtime: $1,500 per unit- Cost of Increasing Units (Hiring): $200 per unit- Cost of Decreasing Units (Layoffs): $350 per unit**Problem Questions:**a. **Level Strategy Production Cost:** Produce utilizing a level production strategy at 180 units per month. Incur costs based on regular production, inventory holding, and capacity changes. Determine the total cost of this production strategy.b. **Back-Ordering Necessities:** Determine if there is a need to back-order during the six months. Calculate how many units need to be back-ordered if applicable.f. **Lowest Cost Strategy:** Assess various strategies to find the most cost-effective solution for production planning over the six-month period. Make your selection based on the provided data and constraints.This case study explores optimal production strategies under given constraints, enabling learners to analyze costs and develop decision-making skills related to operations management.

Find the Level Strategy below: a. The Cost of the strategy is $ 1380400 b. Back order Requirement:…

Answered: ABC Wash, Inc., makes commercial and…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Explain what satisficing is and when it may be a good strategy.

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