Scenario: You have identified 2 key customers whose business you want. One customer buys Raisin, Nut, and Original every 6 days in quantities of 21,500 boxes each. They buy on days 1, 7, 13, and so forth. The other customer buys Blueberry, Strawberry, and Mixed Fruit every 6 days in quantities of 21,500 boxes each. The second customer buys on days 4, 10, 16, and so forth. This pattern repeats indefinitely with each customer buying every 6 days on their own schedule. If you do not have the product in stock on the day these customers want to order, they will order from your competitors. You have decided to use short production runs to meet the product requirements of these two customers.
a. Propose your production schedule.
b. Identify any capacity improvements and setup time reductions to achieve your schedule.
c. Identify the total costs of any capacity and setup time improvements.