CASE STUDY REALCO BREADMAKER Essay

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Case Studies BUS 307 Operations Management & Quantitative Techniques Feb 10, 2014 Case Studies Chapter 12 Case Study: The Realco Breadmaker 1. Develop a master production schedule for the breadmaker. What do the projected ending inventory and available-to-promise numbers look like? Has Realco “overpromised”? In your view, should Realco update either the forecast or the production numbers? A master production schedule for the bread-maker will be presented below. Demand Management Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8. Weekly demand for bread-maker is 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000. Working days in a week is 6 6 6 6 6 6 6 6. MPS demand for bread-maker 3,333…show more content…
On the other hand, if the levels are too high, an enterprise may encounter depreciation, spoiling and even storage problems (Cox and Blackstone, 2002). Production 20,000 bread-makers every week by Realco would result to a low average inventory. This implies that Realco Breadmaster Company could run out of bread-makers and lose potential customers or sales. For instance, the current orders for week one amount are 23,500. A weekly production of 20, 000 bred-makers implies that there would be a deficit of 3, 500 bread-makers. Realco Company would therefore lose three thousand five hundred potential sales by reducing the weekly production to 20,000. Chapter 13 Case Study: Supply-Chain Challenges in Post-Earthquake Japan The March 11 earthquake in Japan crippled the Japanese automakers, exposing the frailties of the favored lean production system. Key Japanese automakers were forced to shut down their operations after most of their suppliers were crippled by the earthquake. Key parts need for production flow could not be secured on time. Lean production system encourages manufacturers to produce only the product they need, with the key focus being reduction of wastage in the production system (Shah and Ward, 2007). The lean production system has several advantages and disadvantages. After stabilization of the production system, Japanese automakers had to come up with a “foolproof” supply

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