Guru Manufacturing has an operation with a six-month requirements schedule given in the table below. They have been following a fixed lot ordering strategy to fulfill the operation's requirements, which costs Guru $350,000 for the six-month planning period. Recently, while attending a supply chain management conference, Sam, Guru's operations manager, met Sarah who is a recently graduated supply chain student and chatted about Guru's operations. Sarah contended that Guru could optimize their requirements planning process leading to reduced overall costs. Capitalizing on the opportunity, Sam hired Sarah as an operations analyst for an annual salary of $80,000 and a bonus of 10% on each dollar she can save Guru on operations. Determined to optimize Guru's requirements planning process, Sarah started collecting data about the process and found that ordering costs Guru $10,000 an order and inventory holding costs Guru $0.50 a unit a month. How much bonus did Sarah make at the end of the six-month planning period? 2 4 5 Period Demand (in thousands) 1 120 80 3 80 70 100 6 60

Guru Manufacturing has an operation with a six-month requirements schedule given in the table below. They have been following a fixed lot ordering strategy to fulfill the operation's requirements, which costs Guru $350,000 for the six-month planning period. Recently, while attending a supply chain management conference, Sam, Guru's operations manager, met Sarah who is a recently graduated supply chain student and chatted about Guru's operations. Sarah contended that Guru could optimize their requirements planning process leading to reduced overall costs. Capitalizing on the opportunity, Sam hired Sarah as an operations analyst for an annual salary of $80,000 and a bonus of 10% on each dollar she can save Guru on operations. Determined to optimize Guru's requirements planning process, Sarah started collecting data about the process and found that ordering costs Guru $10,000 an order and inventory holding costs Guru $0.50 a unit a month. How much bonus did Sarah make at the end of the six-month planning period? 2 4 5 Period Demand (in thousands) 1 120 80 3 80 70 100 6 60

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

$250,000

$19,000

$10,000

none of the choices

$90,000

Guru Manufacturing has an operation with a six-month requirements schedule given
in the table below. They have been following a fixed lot ordering strategy to fulfill
the operation's requirements, which costs Guru $350,000 for the six-month planning
period. Recently, while attending a supply chain management conference, Sam,
Guru's operations manager, met Sarah who is a recently graduated supply chain
student and chatted about Guru's operations. Sarah contended that Guru could
optimize their requirements planning process leading to reduced overall costs.
Capitalizing on the opportunity, Sam hired Sarah as an operations analyst for an
annual salary of $80,000 and a bonus of 10% on each dollar she can save Guru on
operations. Determined to optimize Guru's requirements planning process, Sarah
started collecting data about the process and found that ordering costs Guru
$10,000 an order and inventory holding costs Guru $0.50 a unit a month.
How much bonus did Sarah make at the end of the six-month planning period?
Period
1
2
4
5
Demand
(in thousands)
120
80
3
80
70
100
6
60

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