Figure 11-3: CRYSTAL NATURAL MINERAL WATER COMPANY POLICY: Schedule follows demand without shortage

DATA: Capacity Cost/month Other revenues and costs in $1000: Sales projections
On operations: 1000 cases in $1000 Raw materials/1000 cases $3.1 Sales last year in 1000 cases
1 shift 288 $24 Holding cost/1000 cases $0.15 Annual percentage growth
1 shift o/time 72 $9 Shift change cost/up $18 Sales forecast coming year
2 shifts 540 $48 Shift change cost/down $15
2 shifts o/time 125 $18 Revenue/1000 cases $3.5 Desired ending stock
Month: JAN FEB MAR APR MAY JUNE JULY AUG SEP
Sales percent 3.5% 3.1% 4.7% 8.0% 7.4% 10.3% 13.8% 14.4% 14.0%
Potential sales 181 160 242 412 381 530 711 741 721
Total production 131 160 242 412 424 665 665 665 665
Shift level 1 1 1 2 2 2 2 2 2
Product transactions:
Beginning stock 50 0 0 0 0 43 178 132 56
R/T output 131 160 242 412 424 540 540 540 540
O/T output 0 0 0 0 0 125 125 125 125
Amt available 181 160 242 412 424 708 843 797 721
Actual sales 181 160 242 412 381 530 711 741 721
Ending stock 0 0 0 0 43 178 132 56 0
Lost sales 0 0 0 0 0 0 0 0 0
Variable costs/month:
Materials $406.1 $496 $750.2 $1277.2 $1314.4 $2061.5 $2061.5 $2061.5 $2061.5
R/T shift cost $24 $24 $24 $48 $48 $48 $48 $48 $48
O/T shift cost $0 $0 $0 $0 $0 $18 $18 $18 $18
Shift change $0 $0 $0 $18 $0 $0 $0 $0 $0
Holding cost $0 $0 $0 $0 $6.45 $26.7 $19.8 $8.4 $0
Total cost $430.1 $520 $774.2 $1343.2 $1368.85 $2154.2 $2147.3 $2135.9 $2127.5
Revenue $633.5 $560 $847 $1442 $1333.5 $1855 $2488.5 $2593.5 $2523.5
Total revenue minus total va

Cumulative output 181 341 583 995 1419 2084 2749 3414 4079
Cumulative sales 181 341 583 995 1376 1906 2617 3358 4079
le follows demand without shortages

Sales projections
Sales last year in 1000 cases 4900
Annual percentage growth 5%
Sales forecast coming year 5145

Desired ending stock 50

OCT NOV DEC TOTAL
9.9% 4.7% 6.2% 100%
510 242 319 5150
510 251 360 5150
2 1 1

0 0 9
510 251 288 4578
0 0 72 572
510 251 369
510 242 319
0 9 50
0 0 0

$1581 $778.1 $1116 $15965

$48 $24 $24 $456
$0 $0 $9 $81
$0 $15 $0 $33
$0 $1.35 $7.5 $70.2
$1629 $818.45 $1156.5 $16605.2
$1785 $847 $1116.5 $18025
Total revenue minus total variable cost $1419.8

4589 4840 5200

4589 4831 5150