As Paul Finegan or Neal Williamson, recommends the number of patties to load on the truck on Monday, March 31. Why?
The best approach the use as Paul Finegan or Neal Williamson to recommend the number of patties to load on the truck on Monday, March 31 is to implement the Newsvendor model to forecast the number of patties to load. On Friday, March 28, 2014. Neal Williamson informed Kari Magee that the food truck has run of beef patties for the 6th time that month. On the other hand, Paul Finegan was convinced that forecasting would improve estimates for the number of patties to put on the food truck each morning.
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Total demand for beef patties based on population in the main campus of Michigan State University = 50,000 students + 11,600 faculty and staff.
Thus, total demand = 61, 600 consumers.
To determine the number of patties to load on the food truck on March 31, it is essential to calculate the instock probability for the whole of March (Terwiesch & Cachon, 2012). For 6 days, there was no stock for patties.
Instock probability= (1+1+1+1+1+1+1+1+1+1+1+0+0+1+1+0+1+1+1+0+1+0+1+1+1+0+1+1+1+1+1)÷31 = 0.8
Instock probability for the month of March = 0.8, which indicate the probability that the month of March has sufficient inventory for beef patties.
Therefore, the number of patties to load on food truck on March 31 = P (Demand ≤ Q)
Demand for patties = the quantity needed to be supplied.
Thus, the number of patties to load on food truck on March 31 = 0.8×61,600 = 49,280
The reason for choosing 49,280 as the number of patties to load in a food truck on food truck on 31 March is based on the demand for the product and the instock probability for that month.
How would you convince management to follow your recommendations?
I would recommend the management to bring a bigger food truck will a bigger capacity and equipped with equipment such as coolers, freezers, and refrigerators. I would convince the management to follow my recommendation by demonstrating how the delay to load beef patties on the food truck result in huge financial loss and huge food wastage. The management will assess the limited space, volatile demand for beef patties, and the perishability nature of beef patties to accept my recommendations that solve the entire crisis.