20:54 New News is Good News - Case... INTRODUCTION LTE As Janice already knew, new product launches can be among the best work experiences ever. So much effort from so many people has already gone into this new news magazine. Janice believes the concept is interesting, and she understands that the content performed very well in test groups, receiving an average rating of 4.71 out of 5. Doubt, however, remains. Ever since news went online with trending headlines pushed to smartphones, everyone has been hesitant to be optimistic about paper print products. Optimism has almost come to be viewed as a jinx. If things go well with this new product launch, everyone will be overjoyed and will take great pride in the work they have contributed. If, on the other hand, things do not go well, the culture will turn into one of worry and blame. Janice had seen both outcomes before and she was sure she would see them again. PRELIMINARY RESEARCH The marketing department had done preliminary work and had decided the sale price for the print magazine would be $4.99. Advertisements printed in the magazine are also a source of revenue for the company. For this product, marketing had decided to charge $150 per square inch of space occupied by the ad in the printed product. Preliminary sales figures at this price were rough and were based on data from test groups. Although information from pre-launch test groups is known to scale to production with poor accuracy, at least it provides some information so the team isn't flying blind into production. Data from the five most recent print products launched is shown in Table 1 and Table 2 (Appendix). Table I contains information about cach print product's average performance in pre-launch test groups along with the print product's market price. Table 2 contains the most recent quarter's sales information for the products listed in Table 1. Also shown in Table 2 is the ad content for each edition of each product. Unfortunately, some products in some weeks experienced a stockout; so the exact demand was not observed. There is still, however, some relevant information on demand in a stockout. As the director of the operations and supply chain management department, Janice and her team were tasked with sourcing all materials for the magazine and deciding production quantities. After a lot of work on the purchasing, processing, and logistics planning, Janice's team had found they could get the total cost down to about $0.95 per magazine. Unsold units are scrapped at an additional net cost of about $0.005 per unsold magazine. Fortunately, equipped with this information, Janice's 15 Dashboard Calendar To Do Notifications Inbox