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5. Given the following bills of material and routing information, develop capaci

ID: 371196 • Letter: 5

Question

5. Given the following bills of material and routing information, develop capacity bills for each of the products P and Q:

          P                                                                      Q

A                     B(2)                                         B         C(3)     A(2)

Item

Work Center

Lot Size

Operation

Setup (hrs.)

Run (hrs. per unit)

P

10

30

1 of 1

1.2

0.43

Q

10

50

1 of 1

0.6

0.57

A

20

60

1 of 2

0.8

0.18

A

30

60

2 of 2

0.9

0.33

B

20

80

1 of 1

1.3

0.19

C

20

50

1 of 2

2.1

0.22

C

30

50

2 of 2

0.8

0.09

Item

Work Center

Lot Size

Operation

Setup (hrs.)

Run (hrs. per unit)

P

10

30

1 of 1

1.2

0.43

Q

10

50

1 of 1

0.6

0.57

A

20

60

1 of 2

0.8

0.18

A

30

60

2 of 2

0.9

0.33

B

20

80

1 of 1

1.3

0.19

C

20

50

1 of 2

2.1

0.22

C

30

50

2 of 2

0.8

0.09

Explanation / Answer

Hi,

Thanks for the question.

4 P's define the marketing strategy for any company or for a particular brand. This is the strategy to reach and market the product to the customers.

The 4 P's will be:

Product: As mentioned, the product for this particular scenario will be McChicken and Big Mac.
Price: Price generally should be according to the perception of the customers to see its worth. They should consider to price the product moderately not on a low price because that would give the feel as the quality compromised.
Place: That should be very evenly distributed across the outlets in the US. The product will be very popular so the company should be very efficient in the distribution.
Promotions: Mcdonald's is very aggressive in terms of the advertising mostly in the Tv advertisement or OOH branding.

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