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How to do question 2

Project III: Order Planning Problem Coffee Drink decides to operate a shop at Hong Kong and sells three of their most popular beverages - Espresso, Latte and Cappuccino, which are composed of the following ingredients: (1) Espresso: Coffee Bean (30g) (ii) Latte: Coffee Bean (25g), Milk Foam (5g), Steamed Milk (20g) (iii)Cappuccino: Coffee Bean (40g), Milk Foam (10g), Steamed Milk (10g) To reduce risk of getting out-of-stock, Coffee Drink has to place order with supplier to ensure that there is sufficient coffee bean, milk foam and steamed milk in shop. As shown in Table 1, there are different costs for each ingredient, in which coffee bean costs $8 per kg, milk foam costs $5 per kg and steamed milk costs $3 per kg. As a promotion, the company can order from the supplier using a discount price, i.e. 20% off, for each type of ingredient on every Wednesday. However, no order can be made on every Tuesday and Friday. As the company can order more than the daily demand and store the ingredient in shop for future use, the inventory holding cost for each ingredient is incurred. There is no inventory held before Monday. Steamed Milk Table 1. Costs for each ingredient Ingredients | Coffee Bean Milk Foam Ingredient Cost per kg (Except Wednesday) S8 S5 Ingredient Cost per kg (Wednesday only) $6.4 $4 Inventory Holding Cost per kg $1 $0.5 $2.4 $0.2 L Coffee Drink is going to develop a system to prepare the ordering plan based on the previous weekly demands, as shown in Table 2. Sat Table 2. Weekly demands for each beverage | Mon Tue Wed Thu Fri 65 60 40 40 54 90 70 70 39 80 45 55 62 Sun 50 Espresso Latte Cappuccino 55 70 85 What to do: 1. Being the representative of your company, you are required to prepare an ordering plan so as to determine when to order and the amount to order for each ingredient, aiming to minimize the overall cost (i.e. ingredient cost and holding cost). Create a user interface to allow the manager to change the daily demand for planning the new ordering schedule. By considering different scenarios (such as increase demand in Holiday, waive of inventory holding cost, increase/decrease in ingredient cost, etc), discuss any change to the weekly ordering plan. Project III: Order Planning Problem Coffee Drink decides to operate a shop at Hong Kong and sells three of their most popular beverages - Espresso, Latte and Cappuccino, which are composed of the following ingredients: (1) Espresso: Coffee Bean (30g) (ii) Latte: Coffee Bean (25g), Milk Foam (5g), Steamed Milk (20g) (iii)Cappuccino: Coffee Bean (40g), Milk Foam (10g), Steamed Milk (10g) To reduce risk of getting out-of-stock, Coffee Drink has to place order with supplier to ensure that there is sufficient coffee bean, milk foam and steamed milk in shop. As shown in Table 1, there are different costs for each ingredient, in which coffee bean costs $8 per kg, milk foam costs $5 per kg and steamed milk costs $3 per kg. As a promotion, the company can order from the supplier using a discount price, i.e. 20% off, for each type of ingredient on every Wednesday. However, no order can be made on every Tuesday and Friday. As the company can order more than the daily demand and store the ingredient in shop for future use, the inventory holding cost for each ingredient is incurred. There is no inventory held before Monday. Steamed Milk Table 1. Costs for each ingredient Ingredients | Coffee Bean Milk Foam Ingredient Cost per kg (Except Wednesday) S8 S5 Ingredient Cost per kg (Wednesday only) $6.4 $4 Inventory Holding Cost per kg $1 $0.5 $2.4 $0.2 L Coffee Drink is going to develop a system to prepare the ordering plan based on the previous weekly demands, as shown in Table 2. Sat Table 2. Weekly demands for each beverage | Mon Tue Wed Thu Fri 65 60 40 40 54 90 70 70 39 80 45 55 62 Sun 50 Espresso Latte Cappuccino 55 70 85 What to do: 1. Being the representative of your company, you are required to prepare an ordering plan so as to determine when to order and the amount to order for each ingredient, aiming to minimize the overall cost (i.e. ingredient cost and holding cost). Create a user interface to allow the manager to change the daily demand for planning the new ordering schedule. By considering different scenarios (such as increase demand in Holiday, waive of inventory holding cost, increase/decrease in ingredient cost, etc), discuss any change to the weekly ordering plan