Case Problem SCHEDULING AT HAWK SYSTEMS, INC. Jim Hay and Roderick Whorker were sales seper statives in computer dore ata shopping mall in Arlington, Virginia, when they got the idea of poing s bines in the hug and highly competitive micro- pater market. Jim went to To the to voit relatives and mode a contact with a new m ping display monitors for microcopters, which www looking for an East Coast district in America Jim ve deal with the firm opply a maxiER af 500 mois per month and called Red to w if he of a building they could operate out of and potential contemen Rod wol to work. The and thing he did wa snd buds to several universities in Maryland, Virgima, and Pennytsis for contracts na hol vender for monitors at the school. Next, he started looking for a facility to operate from and his operation would p vaki ir physical modification to the monitors, includ ng labeling, testing, packaging, and then storage in pe for chipping He knew he ended a building with good security, i-coming, and a loading dock However, his arch pereed in be more difcut that he qued. Beilding space of the type and war he mended was very limited in the area and very expem Rad began to worry that he would not be able to find a table fl ity all. He decided to look for space in the Virginia and Maryland subs and earyde and although he found school and if they had to in stock, they would pary her thing s Read milked the liter. He leval the building. Also, he liked the who that they wld not be indeed for a flat ease payment and that the cally on a per-unil han it they failed, at least they would be stuck with huge leane. So he agreed to w Miriam's offer Who Jim retard from Tarn, he was skorption) Rod's an angement with Mans He wa da ged that hadn') performed a monthly of the conta Rd explaimed that it was pretty and to do anamaly when he did not know their pol tales, or selling price Jas sal he had a pain, and his co- com www.hud ollut by the fact that Rond lal ge contracts with fiseerid vendes for willing price of $150 per an. So the wo dows to begin plamang thair apentive. Fint, and he kad thought of a name for their pe Hewk Systems, Inc. which he said siod for Hang and Wheek Computers. When Rad ked how im got si comes cited potic lice Jam and that he had fipmed that the total cost of the its for them in lading the purchase of the smits, shap py, and the own mairial, labes, and administrave ontwould be $100 per unit during the first 4 son he would then shop to 500 per month for the following 4 munibe and finally, to 5% per mother of the year Jimed that the fing being able to lower the phase price is pr son cond would go down it and experience. Jum thought their wild go down, toe. He a explained that they wild n he shie to wy Bom, ss it was important that they develop a good oper plm that would et This was so much more important than had exiginally thought because of their peculiar lese me the inventory breat Rod said that he had done scanh on pas compar sales at the bey had contracted with and had come up with the following sales love for the wed months of the soulme yr (from September through May www good lewatne, the whipping costs at to do nes were extremely high Dishared by his lack of access, Randght help from his sicer-in-law Miam, a seal real estate agent Rod pod out the details of his plight to Miriam dat Rond's mother's hand she was sympatic She told Rod that showed a building in Arlington d might be just what he was looking fox, und she would show it to him the next day. As ped, she shed him the grand foon of the building, and it pro was plenty of space, godity, and a nice eff in How was in a pale shopping an with lots of god od www slated, it was just the type of s he had omissioned for them to set up their busine is jy und when he ackad Mir what the stw. She said he had twicked on the details, but the most weld be and $100.000 per year Rod shocked, so Mirian aid she would offer hinau tive a storage fee of $10 per monites for every monitor ped and in ck the lines of operation, with an ince of 52 per monds per un for the remainder of the you. Miriam explained that hned on what held b about the his, they would not have my sales d the versies opened and the end of Aspast the best of September, and that the sales would fall off so thang in May ce Jone. She and her of that whe would share in the remor false. If they made up vi sniversity miracts, she would op a d along with the if they did not wall my mirs, she would have on the deal. But in the ver ofter September Datober November December Juury Fehnary March April Mag 280****** 340 6.50 660) 5.50 CASE PROBLEM 211 Risl explained Jim that copul exquipe purchas vities pop in the fall, the drop weil January, tus pak agam in April, jual clors uneenity hodgets s enhanted at the end of the academic your in the mal od what kind of bly undering schschule from The they held develop in meet demand while minimizing the con Rod said that it was di ficult question, but he sombered that when he was in vollega ina wanagement since held sp dacam ache developed using a sportation model Im so he got this oat tashook and put hany, or they would he imming over all the profits to Ma However, before Rad was able es develop a shk Jengo a call from the Taiwan firm, saying that it had got tem we bess later in the you and it cold so longly sp to 500 per mod lasted, could a apply 700 miles for the first 4 mond d 300 fot neu 5. Ji and Roderizst what this would do to their inventory A. Feate and solve a transportation model in der nally and und distrion schedule for Hawk System that will c B. If Hawk Sy het hom appimately $200.000 up the hin will it ml up mak ng anything the first year? C. What will the change in the Taiwan fom cunt Hoek System pply patters from the D. How did Mim (we with her aberatis cast arrangement? Would he he has beter all with a a $10,000 lame payment

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