Chad's Creative Concept Case Study

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CHAD’S CREATIVE CONCEPTS Main Problem: The standard lines sales is steadily increasing but the costumed furniture is given more attention because it has more sales compared to the standard lines. This leads to the standard furniture not being finished and requires stages to complete. Not just that, but also company needs to have bigger storage or space for this kind of situation. Objectives: 1. To rent a bigger warehouse wherein they can accommodate the inventory resulting to increase the holding cost. 2. To have Inventories management 3. To Allocate of raw materials 4. To Schedule about how products to produce so that it will not be sitting around their warehouse. 5. To Develop forecasting methodology and techniques to…show more content…
Advantages: Gain more storage for their products. They will make more products because they have enough storage for it. Disadvantages: It will be costly for the company because they don’t have budget for it. 2. Capacity to accept demand for both product lines Advantages: They will gain more sales because they will be accepting more demand that the customer want. Customers will be buying from them frequently because they will be accepting demands. Disadvantages: The quality of the product are not really good because making of many product doesn’t have really good quality control. Customer might complain because of the product that they don’t expect to get. 3. He must make schedule wherein how many will they make for today so that the raw materials will not be wasted. Advantages: Raw materials are not unexploited. Money will be saved. Disadvantages: Maybe they will be lacking of raw materials because they just bought the right amount of raw materials. Some of the raw materials might have defect and it will lead to longer production of the product. 4. Recruit more staff for the manufacture Advantages: Reduce Relay in the manufacture. Disadvantages: More expense because you hire more staff for manufacturing the products. Where to get this skilled staff that is right for the position. Recommendation: I recommend ACA’S # 1 and 4. Aca # 1 because even though you it will be costly for your part to have another warehouse but in the long run it will

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