Helpful Hints: A. General constraints and inputs: B. Guidance on specific questions: Level Strategy: Initial staffing level is 20 employees (FTE)Initial Inventory is 0 board feetAim to minimize the f

Helpful Hints:

A. General constraints and inputs:

B. Guidance on specific questions:

Level Strategy:

Initial staffing level is 20 employees (FTE)

Initial Inventory is 0 board feet

Aim to minimize the final inventory while remaining within the constraints and minimizing cost

Inventory from Chile needs to be shipped at $50/1000bf

We are not considering any backordering in this case

Strategy That Has A Total Lower Cost Than the “Proposed Plan”:

Initial staffing level is 20 employees (FTE)

Initial Inventory is 0 board feet

Shipping cost is not necessary to include for subcontracted production. It’s included in the subcontractor rate

We are not considering any backordering in this case

V. Example of Green Mills “Proposed Plan”:

This Excel Spreadsheet shows the “Proposed Plan” that Green Mills is considering using for this upcoming year.

VI. Assignment Questions:

Please answer the following questions in your slides:

Create a seven-slide professional business PowerPoint presentation, which communicates succinct and concise analysis and recommendations (Remember: some supervisors will not read beyond the headline of each slide). One slide should be dedicated to each question below and one slide should be dedicated to an overall synthesis and recommendation. The ‘notes’ section should be utilized to provide further detail and context to the slides. Note the slides above do not include the agenda, objective nor the summary slide.

Graph the demand over time (Demand and Total Production on y-axis, January through December; Time by month on x-axis). Place both the Level Plan and your team’s proposed plan on the same graph. What does this graph tell you…Explain! This question has two parts: (5 points)

This question has two parts: (5 points)

i. For example, Production costs, $150 per 1000 board feet

i. For example, Maximum shipping capacity, 1500000 board feet per month

Develop and calculate the total cost of a ‘Level Strategy’ at Green Mills while considering the constraints and operating conditions laid out in the case as well as in the ‘Helpful Hints’ section of this document. Interpret the drivers of the total cost and implications to the broader business decision. (40 points)

You can also refer to Level and Chase strategies provided in the course material as some general backup references.

Develop and calculate the total cost of a plan (mixed or other) which is less costly than the level one and the proposed plan (in Part V Example above) they are considering, aiming to obtain the lowest cost possible, while maintaining within the constraints and operating conditions laid out in the case as well as in the ‘Helpful Hints’ section of this document. (40 points)

You can also refer to Level and Chase strategies provided in the course material as some general backup references.

Which of the two constraints below have the biggest impact on your plan? This question has two parts: (20 points)

i. Monthly shipping limit

ii. Hiring cost

Add a summary table that compares all three plans and shows all major cost categories. Which plan would you recommend and why? Explain? (10 points)

Explanation & Answer

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