Logistics

 

The Acme Water Pump Company has a problem. The pumps are fairly expensive to make and store, so the company tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a water pump is very likely to get one from a competitor if Acme doesn’t have one available immediately. Determine what the projected available balance, master production schedule, and the available to promise is for each of the 12 weeks below. Complete the spreadsheet based on the following information:

Lot size: 300
Currently starting inventory: 25 units
Demand time fence: Weeks 1–3
Period

1

2

3

4

5

6

7

8

9

10

11

12

Forecast

90

120

110

80

85

95

100

110

90

90

100

110

Cust. orders

105

97

93

72

98

72

53

21

17

6

2

5

Proj. Balance (25)

 

MPS

 

ATP

After completing the table, write a brief summary of your planning process. Why did you decide on the numbers you did? What were the important factors to consider?

The written summary should be 1-2 paragraphs in length and include an introduction with a thesis statement and a conclusion that summarizes the main ideas. Each paragraph should have a topic sentence supported by 3-5 sentences that offer additional details, explanation, and examples. The essay should be free of errors in grammar, sentence structure, and other mechanics.

The Acme Water Pump company has a problem. The pumps are fairly expensive to make and store, so the company tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a water pump is very likely to get one from a competitor if Acme doesn�t have one available immediately. Acme�s current policy to produce pumps is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up for water pump production for the next week and states he has capacity available to produce 300 at a time next week.

Sample Solution

In terms of Burberrys campaigns throughout the years, there are always two common factors; the classic check and a famous face. Celebrities such as Kendall Jenner, Cara Delevingne, Rihanna and Beyoncé are just some of the names that are associated with Burberry. Including well-known names and faces in campaigns will draw the right kind of attention to the brand because people like Kendall Jenner who have millions of followers and supporters will be and easily recognisable face and will attract her audience to the brand. Although these audiences may not be the typical clientele for Burberry shoppers as many of the supporters who follows these young women will be young women themselves who may not necessarily be able to afford to dress head to toe in Burberry, they would still aspire to be like these influencers or try and live the lavish lifestyle they have by wanting to own something from the brand whether that be the classic trench or the perfume. A lot of this strategy comes from people wanting to feel included and like they are on trend with these beautiful and successful young women. People will follow trends and use of products to fit in with society and feel accepted. Sheldon et al (2011) found that although social media platforms such as Facebook, Instagram and Twitter are there as a way of communicating “humans are designed to connect with others as well as to feel accepted by them. Facebook has been found to promote connections in two steps.” This feeling will drive people to use the platforms to avoid feeling alone and detached from society and will therefore use these platforms to build a sense of belonging for themselves.

A recent campaign with Cara Delevingne for the Burberry Her fragrance which captures Cara Delevingne in her hometown wearing the Burberry check and going around all the main hot spots in London. The concept behind this campaign was to reinforce how the perfume was influenced by London and its surroundings. Burberry described the perfume as ‘beautiful, bustling, creative metropolis, electric and full of life’. Therefore, it was essential to use a personality like Cara Delevingne because no

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