Concept explainers
Determine material requirements plans for pans N and V and subassembly I as described in Solved Problem 3 for each of the following:
a. Assume that there are currently 100 Ns on hand and scheduled receipts of 40 Is and 10 Vs at the beginning of week 3. No Es are on hand: 120 Es are needed at the start of week 5.
b. Assume on-hand and scheduled receipts as in part a. Now suppose that 100 Es are needed at the stmt of week 5 and 55 at the start of week 7. Also, use multiples of these order sizes: N, 800; V, 200. Use lot-for-lot ordering for I.
C. Using your answer to part b, update the MRP for V, using the following additional information for each of these cases: (1) one week has elapsed (making it the start of week 2), and (2) three weeks have elapsed (making it the start of week 4).
The updated master
a)
To prepare A Material requirement plan for the given information.
Introduction: Materials Requirement Planning (MRP) is the planning or scheduling system, which is used in the manufacturing process. It is used to plan the number of items required to produce one unit of finished goods (end item).
Explanation of Solution
Given information:
On-hand balances are 100 units of Component N and 0 units of Component E. Scheduled receipts is 40 units of Component I and 10 units of Component C would arrive at the beginning of Week 3. 120 units of Component E are needed at the beginning of Week 5.
Product structure tree:
Prepare master schedule:
Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Quantity | 120 |
Develop a material requirement planning for End item E:
- It is given that Person X has received an order to deliver 120 units of End item E, which must be shipped at the start of week 5.
- Beginning inventory is given as 0 units.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 120 units (120-0).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 1 week. Company requires 120 units in the beginning of week 5. Hence, they need to order for 120 units (as the lot size is lot-for-lot) on previous week (as the lead-time is 1 week). Thus, company need to order the required units in week 4.
Develop a material requirement planning for Component I (2):
- End item E is the parent item of Component I (2). Hence, the planned order release of E is the gross requirement for Component I (2). As number of units required is 2 for Component I, the planned order release row should be multiplied with 2 to attain the gross requirement column of Component I.
- Beginning inventory is given as 0 units.
- Scheduled receipt is 40 units at the beginning of week 3.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 200 units on week 4 (240-40).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 1 week. Company requires 200 units in the beginning of week 4. Hence, they need to order for 200 units (as the lot size is lot-for-lot) on previous week (as the lead-time is 1 week). Thus, company need to order the required units in week 3.
- Projected on hand inventory for week 5 is 0 units. Calculation is as follows:
Projected on hand for Week 5={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(40+200−240)+0=0
Develop a material requirement planning for Component N (4):
- Component I (2) is the parent item of Component N (4). Hence, the planned order release of Component I (2) is the gross requirement for Component N (4). As number of units required is 4 for Component N, the planned order release row should be multiplied with 2 to attain the gross requirement column of Component N.
- Beginning inventory is given as 100 units.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 700 units on week 3 (800-100).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 2 weeks. The company requires 700 units in the beginning of week 3. Hence, they need to order for 700 units (as the lot size is lot-for-lot) two weeks before (as the lead-time is 2 weeks). Thus, company need to order the required units in week 1.
- Projected on hand inventory for week 4 is 0 units. Calculation is as follows:
Projected on hand for Week 4={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(100−700+800)+0=0
Develop a material requirement planning for Component V:
- Component I (2) is the parent item of Component V. Hence, the planned order release of Component I (2) is the gross requirement for Component V. As number of units required is 1 for Component V, the planned order release row should be multiplied with 1 to attain the gross requirement column of Component V.
- Beginning inventory is given as 0 units.
- Scheduled receipt is 10 units at the beginning of week 3.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 190 units on week 3 (200-10).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 2 weeks. The company requires 700 units in the beginning of week 3. Hence, they need to order for 700 units (as the lot size is lot-for-lot) two weeks before (as the lead-time is 2 weeks). Thus, company need to order the required units in week 1.
- Projected on hand inventory for week 4 is 0 units. Calculation is as follows:
Projected on hand for Week 4={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(10+190−200)+0=0
b)
To prepare A Material requirement plan for the given information.
Introduction: Materials Requirement Planning (MRP) is the planning or scheduling system, which can be used in the manufacturing process. It is used to plan the number of items required to produce one unit of finished goods (end item).
Explanation of Solution
Given information:
On-hand balances are 100 units of Component N and 0 units of Component E. Scheduled receipts is 40 units of Component I and 10 units of Component C would arrive at the beginning of week 3. 100 units of Component E are needed at the beginning of week 5 and 55 units needed at the beginning of week 7. Lot size is multiple of 800 for Component N, multiples of 200 for Component V, and lot-for-lot for Component E and Component I.
Product structure tree:
Develop a material requirement planning for End item E:
- It is given that Person X has received an order to deliver 100 units of End item E in the start of week 5 and 55 units of End item E in the start of week 7.
- Beginning inventory is given as 0 units.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 100 units in week 5 (100-0).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 1 week. Company requires 100 units in the beginning of Week 5. Hence, they need to order for 100 units (as the lot size is lot-for-lot) on previous week (as the lead-time is 1 week). Thus, company need to order the required units in week 4.
Develop a material requirement planning for Component I (2):
- End item E is the parent item of Component I (2). Hence, the planned order release of E is the gross requirement for Component I (2). As number of units required is 2 for Component I, the planned order release row should be multiplied with 2 to attain the gross requirement column of Component I.
- Beginning inventory is given as 0 units.
- Scheduled receipt is 40 units at the beginning of week 3.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 160 units on week 4 (200-40).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 1 week. Company requires 160 units in the beginning of week 4. Hence, they need to order for 160 units (as the lot size is lot-for-lot) on previous week (as the lead-time is 1 week). Thus, company need to order the required units in week 3.
- Projected on hand inventory for week 5 is 0 units. Calculation is as follows:
Projected on hand for Week 5={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(40+160−200)+0=0
Develop a material requirement planning for Component N (4):
- Component I (2) is the parent item of Component N (4). Hence, the planned order release of Component I (2) is the gross requirement for Component N (4). As number of units required is 4 for Component N, the planned order release row should be multiplied with 2 to attain the gross requirement column of Component N.
- Beginning inventory is given as 100 units.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 540 units on week 3 (640-100).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 2 weeks. The company requires 540 units in the beginning of week 3. Hence, they need to order for 800 units (as the lot size is multiples of 800) two weeks before (as the lead-time is 2 weeks). Thus, company need to order the required units in week 1.
- Projected on hand inventory for week 4 is 260 units. Calculation is as follows:
Projected on hand for Week 4={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(100+800−640)+0=260
- Projected on hand inventory for week 6 is 620 units. Calculation is as follows:
Projected on hand for Week 6={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(260+800−440)+0=620
Develop a material requirement planning for Component V:
- Component I (2) is the parent item of Component V. Hence, the planned order release of Component I (2) is the gross requirement for Component V. As number of units required is 1 for Component V, the planned order release row should be multiplied with 1 to attain the gross requirement column of Component V.
- Beginning inventory is given as 0 units.
- Scheduled receipt is 10 units at the beginning of week 3.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 150 units on week 3 (160-10).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 2 weeks. The company requires 150 units in the beginning of week 3. Hence, they need to order for 200 units (as the lot size is multiples of 200) two weeks before (as the lead-time is 2 weeks). Thus, company need to order the required units in week 1.
- Projected on hand inventory for week 4 is 50 units. Calculation is as follows:
Projected on hand for Week 4={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(10+200−160)+0=50
- Projected on hand inventory for week 6 is 140 units. Calculation is as follows:
Projected on hand for Week 6={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(50+200−110)+0=140
c)
1)
To prepare: Material requirement plan for the given information.
Introduction: Materials Requirement Planning (MRP) is the planning or scheduling system, which can be used in the manufacturing process. It is used to plan the number of items required to produce one unit of finished goods (end item).
Explanation of Solution
Given information:
On-hand balances are 100 units of Component N and 0 units of Component E. Scheduled receipts is 800 units of Component N and 200 units of Component V would arrive at the beginning of week 3. Lot size is multiple of 800 for Component N, multiples of 200 for Component V, and lot-for-lot for Component E and Component I.
Week 1 has elapsed. Hence, plan has to be prepared from week 2 through week 9. 100 units of Component E are needed at the beginning of week 5 and 55 units needed at the beginning of week 7. In addition to that, 100 units of End item E are needed in week 9.
Product structure tree:
Develop a material requirement planning for End item E:
- It is given that Person X has received an order to deliver 100 units of End item E in week 5, 55 units in week 7, and 100 units in week 9.
- Beginning inventory is given as 0 units.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 100 units (100-0).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 1 week. Company requires 100 units in the beginning of week 5. Hence, they need to order for 100 units (as the lot size is lot-for-lot) on previous week (as the lead-time is 1 week). Thus, company need to order the required units in week 4.
Develop a material requirement planning for Component I (2):
- End item E is the parent item of Component I (2). Hence, the planned order release of E is the gross requirement for Component I (2). As number of units required is 2 for Component I, the planned order release row should be multiplied with 2 to attain the gross requirement column of Component I.
- Beginning inventory is given as 0 units.
- Scheduled receipt is 40 units at the beginning of week 3.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 160 units on week 4 (200-40).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 1 week. Company requires 160 units in the beginning of week 4. Hence, they need to order for 160 units (as the lot size is lot-for-lot) on previous week (as the lead-time is 1 week). Thus, company need to order the required units in week 3.
- Projected on hand inventory for week 5 is 0 units. Calculation is as follows:
Projected on hand for Week 5={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(40+160−200)+0=0
Develop a material requirement planning for Component N (4):
- Component I (2) is the parent item of Component N (4). Hence, the planned order release of Component I (2) is the gross requirement for Component N (4). As number of units required is 4 for Component N, the planned order release row should be multiplied with 2 to attain the gross requirement column of Component N.
- Beginning inventory is given as 100 units.
- Scheduled receipt is 800 units at the beginning of week 3
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 180 units on week 5 (440-260).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 2 weeks. The company requires 180 units in the beginning of week 5. Hence, they need to order for 800 units (as the lot size is multiples of 800) two weeks before (as the lead-time is 2 weeks). Thus, company need to order the required units in week 3.
- Projected on hand inventory for week 4 is 260 units. Calculation is as follows:
Projected on hand for Week 4={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(900+0−640)+0=260
- Projected on hand inventory for week 6 is 620 units. Calculation is as follows:
Projected on hand for Week 6={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(260+800−440)+0=620
Develop a material requirement planning for Component V:
- Component I (2) is the parent item of Component V. Hence, the planned order release of Component I (2) is the gross requirement for Component V. As number of units required is 1 for Component V, the planned order release row should be multiplied with 1 to attain the gross requirement column of Component V.
- Beginning inventory is given as 0 units.
- Scheduled receipt is 210 units at the beginning of week 3.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 60 units on week 5 (110-50).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 2 weeks. The company requires 700 units in the beginning of week 3. Hence, they need to order for 700 units (as the lot size is lot-for-lot) two weeks before (as the lead-time is 2 weeks). Thus, company need to order the required units in week 1.
- Projected on hand inventory for week 4 is 50 units. Calculation is as follows:
Projected on hand for Week 4={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(210+0−160)+0=50
- Projected on hand inventory for week 6 is 140 units. Calculation is as follows:
Projected on hand for Week 6={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(50+200−110)+0=140
1)
To prepare: Material requirement plan for the given information.
Introduction: Materials Requirement Planning (MRP) is the planning or scheduling system, which can be used in the manufacturing process. It is used to plan the number of items required to produce one unit of finished goods (end item).
Explanation of Solution
Given information:
On-hand balances are 100 units of Component N and 0 units of Component E. Scheduled receipts is 800 units of Component N and 200 units of Component V would arrive at the beginning of week 3. Lot size is multiple of 800 for Component N, multiples of 200 for Component V, and lot-for-lot for Component E and Component I.
Week 1 has elapsed. Hence, plan has to be prepared from week 2 through week 9. 100 units of Component E are needed at the beginning of week 5 and 55 units needed at the beginning of week 7. In addition to that, 100 units of End item E are needed in week 9.
Product structure tree:
Develop a material requirement planning for End item E:
- It is given that Person X has received an order to deliver 100 units of End item E in week 5, 55 units in week 7, and 100 units in week 9.
- Beginning inventory is given as 0 units.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 100 units (100-0).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 1 week. Company requires 100 units in the beginning of week 5. Hence, they need to order for 100 units (as the lot size is lot-for-lot) on previous week (as the lead-time is 1 week). Thus, company need to order the required units in week 4.
Develop a material requirement planning for Component I (2):
- End item E is the parent item of Component I (2). Hence, the planned order release of E is the gross requirement for Component I (2). As number of units required is 2 for Component I, the planned order release row should be multiplied with 2 to attain the gross requirement column of Component I.
- Beginning inventory is given as 0 units.
- Scheduled receipt is 40 units at the beginning of week 3.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 160 units on week 4 (200-40).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 1 week. Company requires 160 units in the beginning of week 4. Hence, they need to order for 160 units (as the lot size is lot-for-lot) on previous week (as the lead-time is 1 week). Thus, company need to order the required units in week 3.
- Projected on hand inventory for week 5 is 0 units. Calculation is as follows:
Projected on hand for Week 5={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(40+160−200)+0=0
Develop a material requirement planning for Component N (4):
- Component I (2) is the parent item of Component N (4). Hence, the planned order release of Component I (2) is the gross requirement for Component N (4). As number of units required is 4 for Component N, the planned order release row should be multiplied with 2 to attain the gross requirement column of Component N.
- Beginning inventory is given as 100 units.
- Scheduled receipt is 800 units at the beginning of week 3
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 180 units on week 5 (440-260).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 2 weeks. The company requires 180 units in the beginning of week 5. Hence, they need to order for 800 units (as the lot size is multiples of 800) two weeks before (as the lead-time is 2 weeks). Thus, company need to order the required units in week 3.
- Projected on hand inventory for week 4 is 260 units. Calculation is as follows:
Projected on hand for Week 4={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(900+0−640)+0=260
- Projected on hand inventory for week 6 is 620 units. Calculation is as follows:
Projected on hand for Week 6={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(260+800−440)+0=620
Develop a material requirement planning for Component V:
- Component I (2) is the parent item of Component V. Hence, the planned order release of Component I (2) is the gross requirement for Component V. As number of units required is 1 for Component V, the planned order release row should be multiplied with 1 to attain the gross requirement column of Component V.
- Beginning inventory is given as 0 units.
- Scheduled receipt is 210 units at the beginning of week 3.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 60 units on week 5 (110-50).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 2 weeks. The company requires 700 units in the beginning of week 3. Hence, they need to order for 700 units (as the lot size is lot-for-lot) two weeks before (as the lead-time is 2 weeks). Thus, company need to order the required units in week 1.
- Projected on hand inventory for week 4 is 50 units. Calculation is as follows:
Projected on hand for Week 4={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(210+0−160)+0=50
- Projected on hand inventory for week 6 is 140 units. Calculation is as follows:
Projected on hand for Week 6={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(50+200−110)+0=140
2)
To prepare: Material requirement plan for the given information.
Introduction: Materials Requirement Planning (MRP) is the planning or scheduling system, which can be used in the manufacturing process. It is used to plan the number of items required to produce one unit of finished goods (end item).
Explanation of Solution
Given information:
On-hand balances are 100 units of Component N and 0 units of Component E. Lot size is multiple of 800 for Component N, multiples of 200 for Component V, and lot-for-lot for Component E and Component I.
Two weeks (week 2 and week 3) has elapsed. Hence, plan has to be prepared from week 4 through week 11. 100 units of Component E are needed at the beginning of week 5 and 55 units needed at the beginning of week 7. In addition to that, 100 units of End item E are needed in week 9.
Planned order releases from 2nd and 3rd week should be used as scheduled receipt units. Scheduled receipt are 160 units of Component I at the start of 4th week, 800 units of Component N at the start of 5th week, and 200 units of Component V at the start of 5th week.
Product structure tree:
Develop a material requirement planning for End item E:
- It is given that Person X has received an order to deliver 100 units of End item E in week 5, 55 units in week 7, and 100 units in week 9.
- Beginning inventory is given as 0 units.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 100 units at week 5 (100-0).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 1 week. Company requires 100 units in the beginning of week 5. Hence, they need to order for 100 units (as the lot size is lot-for-lot) on previous week (as the lead-time is 1 week). Thus, company need to order the required units in week 4.
Develop a material requirement planning for Component I (2):
- End item E is the parent item of Component I (2). Hence, the planned order release of E is the gross requirement for Component I (2). As number of units required is 2 for Component I, the planned order release row should be multiplied with 2 to attain the gross requirement column of Component I.
- Beginning inventory is given as 40 units.
- Scheduled receipt is 160 units at the beginning of week 4.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 100 units on week 6 (110-0).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 1 week. Company requires 110 units in the beginning of week 6. Hence, they need to order for 110 units (as the lot size is lot-for-lot) on previous week (as the lead-time is 1 week). Thus, company need to order the required units in week 5.
- Projected on hand inventory for week 5 is 0 units. Calculation is as follows:
Projected on hand for Week 5={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(200+0−200)+0=0
Develop a material requirement planning for Component N (4):
- Component I (2) is the parent item of Component N (4). Hence, the planned order release of Component I (2) is the gross requirement for Component N (4). As number of units required is 4 for Component N, the planned order release row should be multiplied with 2 to attain the gross requirement column of Component N.
- Beginning inventory is given as 260 units.
- Scheduled receipt is 800 units at the beginning of week 3
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 180 units on week 7 (800-620).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 2 weeks. The company requires 180 units in the beginning of week 7. Hence, they need to order for 800 units (as the lot size is multiples of 800) two weeks before (as the lead-time is 2 weeks). Thus, company need to order the required units in week 5.
- Projected on hand inventory for week 5 is 1,060 units. Calculation is as follows:
Projected on hand for Week 4={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(260+0−0)+800=1,060
- Projected on hand inventory for week 6 is 620 units. Calculation is as follows:
Projected on hand for Week 6={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(1,060+0−440)+0=620
Develop a material requirement planning for Component V:
- Component I (2) is the parent item of Component V. Hence, the planned order release of Component I (2) is the gross requirement for Component V. As number of units required is 1 for Component V, the planned order release row should be multiplied with 1 to attain the gross requirement column of Component V.
- Beginning inventory is given as 50 units.
- Scheduled receipt is 200 units at the beginning of week 5.
- Net requirement can be calculated by subtracting the projected on-hand from the gross requirement. Hence, the net requirement is 60 units on week 7 (200-140).
- Planned order release is the order given by the company and planned order receipts is the order received by the firm.
- Lead-time is given as 2 weeks. The company requires 60 units in the beginning of week 7. Hence, they need to order for 200 units (as the lot size is multiples of 200) two weeks before (as the lead-time is 2 weeks). Thus, company need to order the required units in week 5.
- Projected on hand inventory for week 6 is 140 units. Calculation is as follows:
Projected on hand for Week 6={(Projected on-hand+Planned order receipt−Gross requirement)+Scheduled receipt}=(250+0−110)+0=140
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- In the context of the material in Chapter 9, provide a critical analysis of the decisions that Henry has made in assigning Martin to this role.arrow_forwardpanies (pp. 80-118). New York, NY: Times Books, specifically Chap. 4, "Robert Eaton and Robert Lutz; The Copilots." CASE STUDY 9-2 Performance Management Leadership at Henry's Commercial Sales and Leasing H enry is the owner of a small real estate agency that handles the sale and leasing of commercial property. He has two real estate agents working in the office, along with himself. He also has two customer service representatives (CSRs), each of whom has a real estate license, and one receptionist who has worked for the company for about three months. Henry has recently decided that he needs another customer service representative. He hasarrow_forwardDiscuss possible solutions to help Tara become an effective CSR. What should martin be doing to help her?arrow_forward
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- Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next month. Remember to select the forecasting technique that produces the forecast error nearest to zero. For example: a. Naïve Forecast is 230 and the Forecast Error is -15. b. 3-Month Moving Forecast is 290 and the Forecast Error is -75. c. Exponential Smoothing Forecast for .2 is 308 and the Forecast Error is -93. d. Exponential Smoothing Forecast for .5 is 279 and the Forecast Error is -64. e. Seasonal Forecast is 297 and the Forecast Error is -82. The forecast for the next month would be 230 as the Naïve Forecast had the Forecast Error closest to zero with a -15. This forecasting technique was the best performing technique for that month. You do not need to do any external analysis-the forecast error for each strategy is already calculated for you in the tables below. Naïve Month Period Actual Demand Naïve Forecast Error 3- Month Moving Forecast 3- Month Moving…arrow_forwardScenario You have been given a task to create a demand forecast for the second year of sales of a premium outdoor grill. Accurate forecasts are important for many reasons, including for the company to ensure they have the materials they need to create the products required in a certain period of time. Your objective is to minimize the forecast error, which will be measured using the Mean Absolute Percentage Error (MAPE) with a goal of being below 25%. You have historical monthly sales data for the past year and access to software that provides forecasts based on five different forecasting techniques (Naïve, 3-Month Moving Average, Exponential Smoothing for .2, Exponential Smooth for .5, and Seasonal) to help determine the best forecast for that particular month. Based on the given data, you will identify trends and patterns to create a more accurate forecast. Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next…arrow_forwardUse the internet to obtain crash safety ratings for passenger vehicles. Then, answer thesequestions:a. Which vehicles received the highest ratings? The lowest ratings?b. How important are crash-safety ratings to new car buyers? Does the degree of importancedepend on the circumstances of the buyer?c. Which types of buyers would you expect to be the most concerned with crash-safety ratings?d. Are there other features of a new car that might sway a buyer from focusing solely on crashsafety? If so, what might they be?arrow_forward
- “Implementing a Performance Management Communication Plan at Accounting, Inc.” Evaluate Accounting Inc.’s communication plan. Specifically, does it answer all of the questions that a good communication plan should answer? Which questions are left unanswered? How would you provide answers to the unanswered questions? “Implementing an Appeals Process at Accounting, Inc.” If you were to design an appeals process to handle these complaints well, what would be the appeal process? Describe the recommended process and why.arrow_forwardThe annual demand for water bottles at Mega Stores is 500 units, with an ordering cost of Rs. 200 per order. If the annual inventory holding cost is estimated to be 20%. of unit cost, how frequently should he replenish his stocks? Further, suppose the supplier offers him a discount on bulk ordering as given below. Can the manager reduce his costs by taking advantage of either of these discounts? Recommend the best ordering policy for the store. Order size Unit cost (Rs.) 1 – 49 pcs. 20.00 50 – 149 pcs. 19.50 150 – 299 pcs. 19.00 300 pcs. or more 18.00arrow_forwardHelp answer showing level work and formulasarrow_forward
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