Question
Jacobs sells to manufacturers of products that will pay a premium for foam insulators with these properties. All of Jacobs' customers purchase the foam chemical
Jacobs sells to manufacturers of products that will pay a premium for foam insulators with these properties. All of Jacobs' customers purchase the foam chemical as a substitute for competitors' products. If Jacobs cannot meet the order when it is received, the customer makes its purchase from a competitor without any loss of future demand.
Jacobs will eventually migrate to a new technology using a different supply chain network. This new foam technology will render the current technology obsolete. Factories producing the new foam will come online on day 1460. All customers are aware of the pending new technology and, as a result, demand will decrease linearly beginning at day 1430, reaching 0 on day 1460.
C. Market
Calopeia: Air conditioner retrofit kits
There are no long-run market trends, either upward or downward. The size of orders is very random with an average size of 7 or 8. Orders also arrive randomly.
Sorange: Hardwood floor laminates
Although order size and arrivals are random, the long run average demand will grow linearly from day 640 until day 1430. The average order size is about 8 drums and demand is not seasonal.
(Tyran) and (Fardo): Premium home appliances
Orders arrive to Jacobs directly from the appliance factories. Both order size and order arrivals are random. Demand began on day 640 and grew to its final long-run average a month later. Long-run average demand is not seasonal and is not trending either upward or downward. The average order size is about 8 drums.
Entworpe: Insulation products for commercial builders
The quilt manufacturer uses a reorder point policy where 250 units are purchased whenever its inventory drops to a predetermined level. So although orders are always for 250 units, orders arrive randomly. Demand started on day 640 and was stable by day 670. Long-run average demand is not seasonal and is not trending either upward or downward.
Fardo: Private airplanes
Demand began on day 640 and stabilized by day 670. Long-run average demand is not seasonal and is not trending either upward or downward.
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