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Golf-Sport is a small-sized company that produces high-quality components for people who build their own golf clubs and prebuilt sets of clubs. There are five

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Golf-Sport is a small-sized company that produces high-quality components for people who build their own golf clubs and prebuilt sets of clubs. There are five components-steel shafts, graphite shafts, forged iron heads, metal wood heads, and metal wood heads with titanium inserts-made in three plants-Chandler, Glendale, and Tucson-in the Golf-Sport system. Each plant can produce any of the components, although each plant has a different set of individual constraints and unit costs. These constraints cover labor and packaging machine time (the machine is used by all components); the specific values for each component-plant combination are given in Tables 1-3. Note that even though the components are identical in the three plants, different production processes are used, and therefore the products use different amounts of resources in different plants. TABLE 1 TABLE 2 Protcetiestoros Cerstrinte flertale TABLE 3 Artictfesurt Ctnataitt: ficst Besides component sales, the company takes the components and manufactures sets of goll clubs. Each set requires 13 shafts, 10 iron heads, and 3 wood heads. All of the shatts in a set must be the same type (steel or graphitel, and all of the wood heads must be the same type (metal or metal with inserts). Assembly times for the sets at each plant are shown in Table 4. Each plant of Golf-Sport has a retail outlet to sell components and sets, and the specific plant is the only supplier for its retall outlet. The minimum and maximum amounts of demand for each plant-product pair are given in Table 5. Note that, although the minimums must be satiafied, you do not need to satisfy demand up to the maximum amount. TAELE 5 Mrintn and Masimun Fudect Denzed per Morth This planning problem is for two months. The costs in Table 6 increase by 12% for the second month, and production times are stationary. Inventory costs are based on end-of-period inventory for each product set and cost out at 8% of the cost values in Table 6 . Table 7 lists the revenue generated by each product. Initially, there is no inventory. TAELE 6 Maviat, Pructutith, and Isuantly Cos (5) per Pirt or Bet TABLE 7 Resente per Pat tr 3 et (\$) The corporation controls the capital available for expenses; the cash requirements for each product are given in the last column of Tables 1-3. There is a total of $20,000 available for advertising for the entire system during each month, and any money not spent in a month is not available the next month. The corporation also controls graphite. Each shaft requires 4 ounces of graphite; a total of 1,000 pounds is available for each of the two months. Again, your job is to determine a recommendation for the company. A recommendation must include a plan for production and sales. In addition, you should also address the following sensitivity-analysis issues in your recommendation: - If you could get more graphite or advertising cash, how much would you like, how would you use it, and what would you be willing to pay? - At what site(s) would you like to add extra packing machine hours, assembly hours, and/or extra labor hours? How much would you be willing to pay per hour and how many extra hours would you like? - Marketing is trying to get Golf-Sport to consider an advertising program that promises a 50% increase in their maximum demand, Can we handle this with the current system or do we need more resources? How much more is the production going to cost if we take on the additional demand? - What innovation (e.g. strategic changes/production changesew goals) does your firm suggest in order to benefit Golf-Sport? Golf-Sport is a small-sized company that produces high-quality components for people who build their own golf clubs and prebuilt sets of clubs. There are five components-steel shafts, graphite shafts, forged iron heads, metal wood heads, and metal wood heads with titanium inserts-made in three plants-Chandler, Glendale, and Tucson-in the Golf-Sport system. Each plant can produce any of the components, although each plant has a different set of individual constraints and unit costs. These constraints cover labor and packaging machine time (the machine is used by all components); the specific values for each component-plant combination are given in Tables 1-3. Note that even though the components are identical in the three plants, different production processes are used, and therefore the products use different amounts of resources in different plants. TABLE 1 TABLE 2 Protcetiestoros Cerstrinte flertale TABLE 3 Artictfesurt Ctnataitt: ficst Besides component sales, the company takes the components and manufactures sets of goll clubs. Each set requires 13 shafts, 10 iron heads, and 3 wood heads. All of the shatts in a set must be the same type (steel or graphitel, and all of the wood heads must be the same type (metal or metal with inserts). Assembly times for the sets at each plant are shown in Table 4. Each plant of Golf-Sport has a retail outlet to sell components and sets, and the specific plant is the only supplier for its retall outlet. The minimum and maximum amounts of demand for each plant-product pair are given in Table 5. Note that, although the minimums must be satiafied, you do not need to satisfy demand up to the maximum amount. TAELE 5 Mrintn and Masimun Fudect Denzed per Morth This planning problem is for two months. The costs in Table 6 increase by 12% for the second month, and production times are stationary. Inventory costs are based on end-of-period inventory for each product set and cost out at 8% of the cost values in Table 6 . Table 7 lists the revenue generated by each product. Initially, there is no inventory. TAELE 6 Maviat, Pructutith, and Isuantly Cos (5) per Pirt or Bet TABLE 7 Resente per Pat tr 3 et (\$) The corporation controls the capital available for expenses; the cash requirements for each product are given in the last column of Tables 1-3. There is a total of $20,000 available for advertising for the entire system during each month, and any money not spent in a month is not available the next month. The corporation also controls graphite. Each shaft requires 4 ounces of graphite; a total of 1,000 pounds is available for each of the two months. Again, your job is to determine a recommendation for the company. A recommendation must include a plan for production and sales. In addition, you should also address the following sensitivity-analysis issues in your recommendation: - If you could get more graphite or advertising cash, how much would you like, how would you use it, and what would you be willing to pay? - At what site(s) would you like to add extra packing machine hours, assembly hours, and/or extra labor hours? How much would you be willing to pay per hour and how many extra hours would you like? - Marketing is trying to get Golf-Sport to consider an advertising program that promises a 50% increase in their maximum demand, Can we handle this with the current system or do we need more resources? How much more is the production going to cost if we take on the additional demand? - What innovation (e.g. strategic changes/production changesew goals) does your firm suggest in order to benefit Golf-Sport

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