The Northwoods General Store in Vermont sells a variety of outdoor clothing items and equipment and several food products at its modern but rustic-looking retail store. Its food products include salmon and maple syrup. The store also runs a lucrative catalog operation. One of its most popular products is maple syrup, which is sold in metal half-gallon cans with a picture of the store on the front. Maple syrup was one of the first products the store produced and sold, and it continues to do so. Setting up the syrup-making equipment to produce a batch of syrup costs $450. Storing the syrup for sales throughout the year is a tricky process because the syrup must be kept in a temperature-controlled facility. The annual cost of carrying a gallon of the syrup is $15. Based on past sales data, the store has forecasted a demand of 7,500 gallons of maple syrup for the coming year. The store can produce approximately 100 gallons of syrup per day during the maple syrup season, which runs from February through May. Because of the short season when the store can actually get sap out of trees, it obviously must produce enough during this 4-month season to meet demand for the whole year. Specifically, store management would like a production and inventory schedule that minimizes costs and indicates when during the year they need to start operating the syrup-making facility full time on a daily basis to meet demand for the remaining 8 months. Develop a syrup production and inventory schedule for the Northwoods General Store.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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The Northwoods General Store in Vermont sells a variety of
outdoor clothing items and equipment and several food products
at its modern but rustic-looking retail store. Its food products
include salmon and maple syrup. The store also runs a
lucrative catalog operation. One of its most popular products
is maple syrup, which is sold in metal half-gallon cans with a
picture of the store on the front.
Maple syrup was one of the first products the store
produced and sold, and it continues to do so. Setting up
the syrup-making equipment to produce a batch of syrup
costs $450. Storing the syrup for sales throughout the
year is a tricky process because the syrup must be kept
in a temperature-controlled facility. The annual cost of
carrying a gallon of the syrup is $15. Based on past sales
data, the store has forecasted a demand of 7,500 gallons
of maple syrup for the coming year. The store can produce
approximately 100 gallons of syrup per day during
the maple syrup season, which runs from February
through May.
Because of the short season when the store can actually
get sap out of trees, it obviously must produce
enough during this 4-month season to meet demand for
the whole year. Specifically, store management would
like a production and inventory schedule that minimizes
costs and indicates when during the year they need to
start operating the syrup-making facility full time on a
daily basis to meet demand for the remaining 8 months.
Develop a syrup production and inventory schedule for
the Northwoods General Store.

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