Jane and John's Goodie Baskets was a business that catered to university and college students in...
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Jane and John's Goodie Baskets was a business that catered to university and college students in Southern Ontario that were away at post-secondary school. Jane and John's Goodie Baskets created gift baskets for students that parents, grandparents and friends could send to the students away at school. These unique customized baskets served a unique market niche. Business was growing. Their competitive advantage was response to the customer. They had a very agile operation and could complete orders on short notice. They had 10 people full time who together could do 1300 baskets per week. Their employees were an integral part of Jane and John's Goodie Baskets success, to recognize their commitment employees received quarterly profit sharing cheques. Flexible work schedules were also encouraged because Jane and John's Goodie Baskets recognized that a motivated, fulfilled employee helped to improve customer relations and in turn their collective success and profitability. These employees enjoyed their work so much that employees did not leave and a "waiting list" of sorts was prepared of interested applicants to get a job when one opened. There was not much training required as assembling baskets was pretty easy work and people were trained very quickly. New design ideas came mostly from employees so creativity and an artistic flair were important characteristics for employees. Each employee was paid $14 an hour and benefits added on another 36% for close to a $19/hour wage. Employees could do on average 3.25 baskets per hour. They also had a list of homemakers that were willing to take on making baskets on short notice. Some of these homemakers were on the "waiting list" for jobs. They paid these homemakers $6 per basket. Some of the post-secondary schools had approached Jane and John's Goodie Baskets about raising money for relief efforts in the Philippines after the Typhoon Kammuri. They were willing to assemble baskets and the wages they were paid were going to be donated to the Red Cross. They would put a team together on short notice and assemble the baskets in the school gym. They would include a note in each assembled basket about the donation to Red Cross Relief Efforts. They had a newer facility that had 2000 square feet. Of that, 1000 feet was storage space, 500 square feet was office space and 500 square feet was assembly space. The storage space could hold about 7000 baskets. It costs $2 per basket per semester to hold inventory in the warehouse. At times when inventory is higher than 7000, it costs an extra $600 for every 1000 extra baskets to store offsite per semester. The offsite warehouse requires a minimum amount of space to be rented. This means increments of 1000 baskets, as an example 2000 baskets, the cost would be $1200. Jane and John's Goodie Baskets was approaching another year-end. It was time to review what had happened over the past year and set a budget for the next fiscal year. The company had one major product family which was Baskets. The company sells three basket types currently with the following distribution of 1) Exam Care Package equates to 50% of sales 2) We Miss You equates to 30 % of sales 3) Let Them Down Gently (Break up) equates to 20% of sales Q4- sales: Disaggregate the level production plan calculated in 3 a) into Master Production Schedule quantities for each end item by week. (Does not have to be in the traditional MPS format just the number and how you got it). Jane and John's Goodie Baskets was a business that catered to university and college students in Southern Ontario that were away at post-secondary school. Jane and John's Goodie Baskets created gift baskets for students that parents, grandparents and friends could send to the students away at school. These unique customized baskets served a unique market niche. Business was growing. Their competitive advantage was response to the customer. They had a very agile operation and could complete orders on short notice. They had 10 people full time who together could do 1300 baskets per week. Their employees were an integral part of Jane and John's Goodie Baskets success, to recognize their commitment employees received quarterly profit sharing cheques. Flexible work schedules were also encouraged because Jane and John's Goodie Baskets recognized that a motivated, fulfilled employee helped to improve customer relations and in turn their collective success and profitability. These employees enjoyed their work so much that employees did not leave and a "waiting list" of sorts was prepared of interested applicants to get a job when one opened. There was not much training required as assembling baskets was pretty easy work and people were trained very quickly. New design ideas came mostly from employees so creativity and an artistic flair were important characteristics for employees. Each employee was paid $14 an hour and benefits added on another 36% for close to a $19/hour wage. Employees could do on average 3.25 baskets per hour. They also had a list of homemakers that were willing to take on making baskets on short notice. Some of these homemakers were on the "waiting list" for jobs. They paid these homemakers $6 per basket. Some of the post-secondary schools had approached Jane and John's Goodie Baskets about raising money for relief efforts in the Philippines after the Typhoon Kammuri. They were willing to assemble baskets and the wages they were paid were going to be donated to the Red Cross. They would put a team together on short notice and assemble the baskets in the school gym. They would include a note in each assembled basket about the donation to Red Cross Relief Efforts. They had a newer facility that had 2000 square feet. Of that, 1000 feet was storage space, 500 square feet was office space and 500 square feet was assembly space. The storage space could hold about 7000 baskets. It costs $2 per basket per semester to hold inventory in the warehouse. At times when inventory is higher than 7000, it costs an extra $600 for every 1000 extra baskets to store offsite per semester. The offsite warehouse requires a minimum amount of space to be rented. This means increments of 1000 baskets, as an example 2000 baskets, the cost would be $1200. Jane and John's Goodie Baskets was approaching another year-end. It was time to review what had happened over the past year and set a budget for the next fiscal year. The company had one major product family which was Baskets. The company sells three basket types currently with the following distribution of 1) Exam Care Package equates to 50% of sales 2) We Miss You equates to 30 % of sales 3) Let Them Down Gently (Break up) equates to 20% of sales Q4- sales: Disaggregate the level production plan calculated in 3 a) into Master Production Schedule quantities for each end item by week. (Does not have to be in the traditional MPS format just the number and how you got it).
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