Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary, especially in light of the recent economic downturns in the global environment where Avie does business.
1. Which approach would be the best for Avie use to forecast demand for its products?
Forecasting should include the use of both quantitative and qualitative approaches to forecast demand for its products.
If Avie Products Inc. were to use the quantitative method, they would do…show more content… 3. Assume that Avie goes ahead with the third shift. What can the company use to evaluate the effectiveness of this strategy in a year’s time?
Avie can assess the effectiveness of this strategy by using the benchmarking. Benchmarking involves comparing Avie Products’ processes and practices with the competition. This will allow Avie to measure how fast and how far they have progressed with their strategic plan. The metrics used are human capital metrics which assesses aspects of the workforce and HR metrics which assesses the performance of the HR function.
4. If the demand for Avie’s product should drop in the future and the company is required to lay off some of the staff on the third shift, what would be the best way to determine who, on this shift, should be laid off? (Note that Avie is not unionized.)
If Avie is required to lay off some employees hired for the third shift, the best way to determine who should be laid off is based on seniority and/or ability. The ability of employees to change jobs and learn new skills, along with their performance is heavily weighed when making layoff decisions. Since Avie is not unionized, layoffs to senior employees can still occur. The practice of using seniority as the basis for layoffs may have an impact on women and minority groups who often have less seniority than others.
Also under the category of layoffs