SCENARIO 13-14-A
You Are the CEO of a Dairy Company

question 100

Short Answer

SCENARIO 13-14-A
You are the CEO of a dairy company. You are planning to expand production by purchasing
additional cows, lands and hiring more workers. From the existing 50 farms owned by the company,
you have collected data on total milk production (in liters) and the number of milking cows. The data
are shown below and also available in the Excel file Scenario13-14-DataA.XLSX. $$\begin{array} { l r r r r r r r r r r } \text { MILK } & 84729 & 101969 & 103314 & 70574 & 76144 & 86695 & 87600 & 105272 & 120422 & 68749 \\& 85541 & 91910 & 110465 & 125369 & 159470 & 102930 & 113214 & 133328 & 140086 & 145514 \\& 152589 & 128304 & 138093 & 161368 & 208136 & 224205 & 231090 & 122204 & 132311 & 155154 \\& 177268 & 196449 & 205324 & 89562 & 94840 & 94997 & 97625 & 102226 & 103832 & 239673 \\& 239861 & 241298 & 249196 & 294455 & 318871 & 66483 & 100459 & 103847 & 154141 & 155516 \\\text { COWS } & 18 & 24 & 22 & 19 & 21 & 19 & 22 & 19 & 24 & 18 \\& 20 & 25 & 26 & 27 & 29 & 24 & 25 & 28 & 26 & 28 \\& 27 & 21 & 24 & 27 & 33 & 32 & 32 & 22 & 25 & 26 \\& 29 & 29 & 28 & 25 & 21 & 23 & 24 & 28 & 25 & 39 \\& 40 & 40 & 39 & 42 & 47 & 19 & 20 & 21 & 25 & 31\end{array}$$ You believe that the number of milking cows is the best predictor for total milk production on any
given farm.
-Referring to Scenario 13-14-A, if you purchase 40 cows for the new farm, the lower and upper
limit of the 95% prediction interval for the total milk production are _____ liters and _____ liters,
respectively.

Understand the impact of flexibility in global supply chains against risks and uncertainties.

Recognize the importance of integrating strategic and financial planning in supply chain network design.

Analyze the cost-benefit aspects of offshoring including labor, capital, and freight cost implications.

Comprehend the complexity of decision trees in supply chain decision-making.

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Definitions:

Accidental Overdose

The unintentional ingestion or administration of a substance in an amount exceeding the recommended or safe limits.

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The network of organs and tissues involved in the process of breathing and exchanging oxygen and carbon dioxide.

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Sedatives

Sedatives are a category of drugs that slow brain activity, used to relax, calm, or induce sleep, often prescribed for anxiety or insomnia.