PLease read attached carefully and make sure you understand the assignment and requirements: 8 page paper, work cites, excel with multiple sheets, and powerpoint.
You will need to research the cost of steel coils (hot or cold rolled) to determine your material cost. Use only reliable sources, Wikipedia is not a reliable source. Your team must determine what a reliable source is and cite your source.
To forecast pipe production, you will need to evaluate the raw material cost from previous years. Use at minimum 20 years of raw material cost (hot or cold rolled steel); and other variables (iron ore/ oil) or any others you think will determine demand. You may use more year’s data if you choose. HINT! – You are forecasting demand for raw material(coils).
Once you have sufficiently forecasted the raw material cost, you will need to plan operations to facilitate the increase or decrease of production in your facility. Please use the appropriate forecast and explain why you chose that specific model.
Determine if you should increase production or decrease and by how much? Based on the right forecast model. Use the past 20 years (2000- 2021) of Hot or Cold rolled steel prices at yearly interval averages to forecast cost. Specify hot or cold in your report.
Make sure to use an excel model to do your forecast.
Research independent variables that affect the price of steel coils
Use these independent variables to forecast the next year’s
Explain the assumed relationship between the independent
variable and dependent variable.
Summarize historical errors using MAD, MSE, or MAPE
Use standard error of estimate to determine how accurate your
Check for correlations and explain
Once you have completed your forecast, determine the cost of steel coils for 2022.
Once you have determined the forecasted price per ton for steel coils, you will need to determine if the forecasted cost will incentivize you to decrease or increase production. What would you increase or decrease production to?
If you choose to increase production, explain why and if your budget needs to be adjusted higher or lower for coil purchases and what the final cost would be?
Based on your decrease or increase determine your new yearly production.
Create a shift schedule based on your new production that will have one crew(a) (workers in all production areas) on 4 days, then the Next crew(b) on for 3 days. This will be a rotating schedule of the current workforce need in each area. (Overtime is 1.5 times the hourly rate after 40 hrs.)
Utilize the pay scale to determine labor cost for your forecast depending on the increase or decrease in production.
Given the labor, raw material, and work shift information, determine the total cost based on your forecast. This is your forecasted budget. (I have excluded some items and simplified for this project.)
What is your forecasted revenue? (Extra credit)
1 Rolled Steel Coil = 5,000 tons
Current price per ton = $900
Estimated Steel Pipe Produced from 1 coil = 10,000 pieces of pipe Current Daily Production = 1,000 pipe per day
Currently Yearly Production = 365,000 pieces
Current number of steel coils used yearly = 37
Current budget for coil purchases – $166,555,000
Pipe sales price = $1,800 (per unit)
Work Schedule is as follows for CURRENT PRODUCTION
Hours = 12hrs/ day (365 days) Workdays per week = 7 Daytime shift only
To determine pay for employees use every two weeks’ pay structure. Start January 1st.
For assignment purposes we assume no shutdowns or maintenance issues.
Supervisors pay = $45/hr.
Crane pay = /hr. Operator pay = /hr. Inspector pay = $30/hr.
IT technician pay = $25/hr. Forklift Operator pay = $25/h Grinder/ Cutter Pay= $20/hr. Helper Pay = /hr.
Areas of Production
(assume employees needed for per shift, remember there is an A & B shift)
Slitter = 1 supervisor Operator = 1
Helpers = 2
Crane Operator = 1
Forming = 1 supervisor Operator = 2
Helpers = 4 Cutter = 1
QA/QC = 1 supervisor Inspectors = 4
Helpers = 2 Grinders = 2
2 forklift operators 2 Helpers/Flaggers
IT = 1 technician
The storage yard at your facility currently has the capacity to hold 40 steel coils. It is important for you to maintain the appropriate amount of inventory for production. Remember assuming production is constant 365days.
Based off your forecast, determine if you will need to increase or decrease storage capacity for your facility; then add a 20% increase in coil inventory to cover scrap and mistakes.
Based off your forecasted demand of coils annually, determine the fixed order size. The annual holding cost is 1,000 per coil and 2,500 to process an order. (Use appropriate economic order model) How many times per year do you need to reorder? What is your total carrying and ordering cost? What is the length of your ordering cycle?
Develop a logistics plan based the following information. Determine which route is the best route. Explain your answer and express your cost structure in an excel table.
Assume the following:
Your location = Houston, TX
Distribution Center A = Corpus Christi, TX Distribution Center B = Fairfield, AL Distribution Center C = Chicago, IL
Gas = $3.50/gal
Trucking mileage cost = .66 per mile Driver hourly rate = 35/ hr.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more