Question

Purchasing and Supply Management Assignment #4 Hershey Chocolate Company You are responsible for managing the supply of cacao beans for Hershey's Chocolate Company. Your assignment is to determine how many pounds of cacao beans are needed for 30 production days. Our manufacturing operation runs 8760 hours per year. Givens: - It takes 2 pounds of cacao beans to produce 1 pound of chocolate. - 2% of beans are wasted during production. - Production schedule for next 30 days: 12,000,000 plain Hershey bars, each weighing 1.75 ounces. Bars contain 80% chocolate from beans. The other 20% is from milk, sugar, and flavorings. - Losses within the chocolate bar manufacturing processes, from the batching of ingredients on thru delivery of finished goods candy into the warehouse =2%. Using the numbers given, calculate the pounds of cacao beans required for the production of Hershey bars for the next 30 days? nknyou must show your work

Answer 1

Approximately 2,186,734 pounds of cacao beans are needed for the production of Hershey bars for the next 30 days based on the given information and calculations.

Let's break this down step by step to find the pounds of cacao beans required for the production of Hershey bars for the next 30 days.

Given Information:

1. Manufacturing Operation Hours: 8760 hours per year

2. Cacao Beans to Chocolate Ratio: 2 pounds of cacao beans produce 1 pound of chocolate

3. Wastage during Production: 2% of beans are wasted

4. Production Schedule for Next 30 Days:

- 12,000,000 plain Hershey bars

- Each bar weighs 1.75 ounces

- Bars contain 80% chocolate from beans and 20% from other ingredients

5. Losses within Chocolate Bar Manufacturing Processes: 2%

Calculation Steps:

Step 1: Calculate Total Chocolate Needed for 12,000,000 Bars

1. Convert bar weight from ounces to pounds:

- 1.75 ounces per bar × (1 pound / 16 ounces) = 0.109375 pounds per bar

2. Calculate total chocolate needed for 12,000,000 bars:

- Total chocolate = Total bars × Weight of chocolate per bar × Percentage of chocolate from beans

- Total chocolate = 12,000,000 bars × 0.109375 pounds per bar × 80%

- Total chocolate = 12,000,000 × 0.109375 × 0.80 = 1,050,000 pounds

Step 2: Account for Cacao Beans Required

1. Since 2 pounds of cacao beans produce 1 pound of chocolate:

- Cacao beans needed = Total chocolate needed × Cacao beans to chocolate ratio

- Cacao beans needed = 1,050,000 pounds × 2

- Cacao beans needed = 2,100,000 pounds

Step 3: Adjust for Wastage

1. Considering 2% wastage during production:

- Wasted beans = Cacao beans needed × Wastage percentage

- Wasted beans = 2,100,000 pounds × 0.02 = 42,000 pounds

2. Total beans required, accounting for wastage:

- Total beans required = Cacao beans needed + Wasted beans

- Total beans required = 2,100,000 pounds + 42,000 pounds = 2,142,000 pounds

Step 4: Account for Losses in Manufacturing Processes

1. Considering losses within the chocolate bar manufacturing processes (2%):

- Final beans needed = Total beans required / (1 - Loss percentage)

- Final beans needed = 2,142,000 pounds / (1 - 0.02)

- Final beans needed = 2,142,000 pounds / 0.98 ≈ 2,186,734 pounds

Answer 2

There are approximately 1,714,289.45 pounds of cacao beans are required for the production of Hershey bars for the next 30 days.

How to solve

To determine the total pounds of cacao beans required for the production of Hershey bars for the next 30 days, follow these steps:

Calculate the total weight of chocolate needed:

12,000,000 bars * 1.75 oz/bar = 21,000,000 oz

Convert ounces to pounds: 21,000,000 oz / 16 oz/lb = 1,312,500 lb

Calculate the weight of chocolate per bar from cacao beans:

Since 80% of the bar is chocolate from beans, 20% is from other ingredients.

Therefore, 1 pound of chocolate from beans produces 1.25 pounds of finished chocolate bar (100% / 80% = 1.25)

Calculate the total weight of chocolate from cacao beans needed:

1,312,500 lb finished chocolate bars * 1.25 lb chocolate from beans/lb finished chocolate bar = 1,640,625 lb chocolate from beans

Account for production losses:

Since 2% of beans are wasted during production, add 2% to the required amount of cacao beans:

1,640,625 lb * 1.02 = 1,676,647.5 lb cacao beans

Account for losses in the chocolate bar manufacturing processes:

Since 2% of chocolate is lost during the bar manufacturing process, add 2% to the required amount of cacao beans:

1,676,647.5 lb * 1.02 = 1,714,289.45 lb cacao beans

Therefore, approximately 1,714,289.45 pounds of cacao beans are required for the production of Hershey bars for the next 30 days.