.. 13.22 WestJet's daily flight from Edmonton to Toronto uses a Boeing 737, with all- coach seating for 120 people. In the past, the airline has priced every seat at $140 for the one-way flight. An average of 80 passengers are on each flight. The variable cost of a filled seat is $25. Katie Morgan, the new operations manager, has decided to try a yield- revenue approach, with seats priced at $80 for early bookings and at $190 for bookings within one week of the flight. She estimates that the airline will sell 65 seats at the lower price and 35 at the higher price. Variable cost will not change. Which approach is preferable to Ms. Morgan? Case Studies ORI 14C R 09 ENG 10:44 2021- * 13.9 Mary Rhodes, operations manager at Burnaby Furniture, has received the following estimates of demand requirements: July Aug. Sept. Oct. Nov. Dec. 1000 1200 1400 1800 1800 1600 a. Assuming stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1000 units per month and subcontract additional units at a $60 per unit premium cost. Plan B: Vary the workforce, which performs at a current production level of 1300 units per month. The cost of hiring additional workers is $3000 per 100 units produced. The cost of layoffs is $6000 per 100 units cut back. PX b. Which plan is best and why? 12.10 Mae Rhodele Doblo 1200 candidedicamore mived startede 14C a 40 ENG ... 13.16 A large Saskatchewan feed mill, B. Swart Processing, prepares its six-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows: January, 1000 bags; February, 1200; March, 1250; April, 1450; May, 1400; and June, 1400. The feed mill plans to begin the new year with no inventory left over from the previous year, and backorders are not permitted. It projects that capacity (during regular hours) for producing bags of feed will remain constant at 800 until the end of April, and then increase to 1100 bags per month when a planned expansion is completed on May 1. Overtime capacity is set at 300 bags per month until the expansion, at which time it will increase to 400 bags per month. A friendly competitor in Alberta is also available as a backup source to meet demand-but can provide only 500 bags total during the six- month period. Develop a six-month production plan for the feed mill using the transportation method. Cost data are as follows: Regular-time cost per bag (until April 30) $12.00 Recular.time castiner baculaftor Max 1 S111.00 o 14C Discussion Questions products/76f832b4-3fd5-4103-a8d7-f2ba856610fa/pages/2e4bb54434cce5e215c82d0c52956664ae57c367e-P70010158070... Ethical Dilemma month period. Develop a six-month production plan for the feed mill using the transportation method. Cost data are as follows: Regular-time cost per bag (until April 30) $12.00 Regular-time cost per bag (after May 1) $11.00 Overtime cost per bag (during entire period) $16.00 Cost of outside purchase per bag $18.50 Carrying cost per bag per month $ 1.00 PX ..1717T 1:ad
