Suppose that the valves are produced in 3 work centers: 100, 200, and 300. At work center 100, molten brass is poured into the form used to shape the valve and takes 1 IE 470 Manufacturing Systems Design & Analysis Fall 2018 week. At work center 200、the holes are drilled in the valves, taking 1 more week. Finally, at work center 300, the valve is polished and the surface is graded, taking 1 more week. The final products will be ready for use. A summary of information for the work centers is given below Work Center 100 Work Center 200 Work Center 300 Machine Throughput units/planning period) 130 150 170 Perform a capacity analysis to determine if you have enough capacity to make what is required. Using the available information try to develop a feasible delivery plan that minimizes the number of late items.

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?