Question

The Temple Orange Juice company sells a variety of juices and fruits and their products at it stores. Its juice products include mango, cherry, melon and a variety of others, including its Temple OJ.

Because of COVID-19, the store has begun to sell its products online and realises that its Temple OJ (orange juice), which is made from a hybrid orange which is very rich in vitamin c, is its most popular product which is sold in half-gallon plastic containers.

Temple OJ was one of the first products the store produced and sold, and it continues to do so. Setting up the orange juice making equipment to produce a batch of orange juice costs the store $450. Storing the pulp from which to make juice for sales throughout the year is tricky process because the pulp must be kept in a temperature-controlled facility. The annual cost of carrying a gallon of the pulp is $15. Based on past sales data, the store manger has forecasted a demand of 7,500 gallons of Temple OJ for the coming year. The store can produce approximately 100 gallons of orange juice per day during the reaping "season", which runs from February through May. The orange tree which produces the Temple orange is a hybrid plant which bears only during the months of February through May.

The store must manage it production runs carefully to ensure that enough is produced to meet demand during this 4-month "season" and for the remainder of the year.

STUDENTS' ACTIVITIES:

Create A SCHEDULE of production runs (when to begin and end production runs) that minimizes costs for the 4-month season.

Create A production run plan that would ensure the availability of orange juice for the remainder of the year.

Answer 1