Space Age Furniture Company

2426 Words10 Pages
In today’s operational management arena, there are certain expectations from a managerial aspect that must be met in order to be successful. A comprehensive look at the Space Age Furniture Company will show exactly what the Materials Requirement Planning (MRP) calculations are for this company at present time and then take the information given in order to properly suggest ways to improve the sub-assemblies. In addition, there will be an analysis on the trade-offs between the overtime and inventory costs. A calculation will be made on the new MRP that will improve the base MRP. This paper will also compare and contrast the types of production processing to include the job shop, batch, repetitive, or continuous, and determine which…show more content…
With this overtime occuring often, it is impacting the quality of life of this particular employee which must be examined by upper management and a decision must be made to improve the process in a more efficient manner in order to reduce the overtime days. The options available for this company involve looking at different inventory models in order to allow this specialist the ability to produce outside high demand windows of opportunity. Initially this company began using the MRP system which enevitably helped to reduce the company’s inventory and at the same time improved their on-time delivery numbers. Currently the process has allowed the Space Age company to maintain a cost of $1.25 per week to store their Gemnini and $1.50 per week to store each of their Saturns that sat in inventory. MRP for Space Age Furniture Company Before going into the exact numbers for this company it is important to make sure and use all tools available. One such tool would be “Electronic data interchange (EDI) connects the databases of different companies. In one early use, EDI allowed companies utilizing material requirements planning (MRP) to inform suppliers of upcoming orders by providing them with access to the database of planned orders” (Vonderembse & White, 2013, Ch. 5.3). Cycle counting is a way to “reconcile inventory records and correct errors, and many
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