The Northwoods General Store in Vermont sells various outdoor clothing items and equipment and several food products at its modem 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, 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 tricky because the syrup must be kept in a temperature-controlled facility. The annual cost of carrying a gallon of syrup is $15. Based on past sales data, the store has forecasted 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, from February through May. Because of the short season when the store can get sap out of trees, it obviously must produce enough during this 4-month season to meet the demand for the whole year. Specifically, store management would like a production and inventory schedule that minimizes costs and indicates when they need to start operating the syrup-making facility full-time daily to meet the demand for the remaining eight (8) months.
The Northwoods General Store in Vermont sells various outdoor clothing items and equipment and several food products at its modem 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, 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 tricky because the syrup must be kept in a temperature-controlled facility. The annual cost of carrying a gallon of syrup is $15. Based on past sales data, the store has forecasted 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, from February through May. Because of the short season when the store can get sap out of trees, it obviously must produce enough during this 4-month season to meet the demand for the whole year. Specifically, store management would like a production and inventory schedule that minimizes costs and indicates when they need to start operating the syrup-making facility full-time daily to meet the demand for the remaining eight (8) months.
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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Transcribed Image Text:The Northwoods General Store
The Northwoods General Store in Vermont sells various 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, 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 tricky because the syrup must be kept in a temperature-controlled facility.
The annual cost of carrying a gallon of syrup is $15. Based on past sales data, the store has
forecasted 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, from February through
May.
Because of the short season when the store can get sap out of trees, it obviously must produce
enough during this 4-month season to meet the demand for the whole year. Specifically, store
management would like a production and inventory schedule that minimizes costs and indicates when
they need to start operating the syrup-making facility full-time daily to meet the demand for the
remaining eight (8) months.
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