EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 13, Problem 1DQ
Summary Introduction
Interpretation:
A good or service providing organization which make aggregate planning decisions.
Concept Introduction:
A good producing organization refers to the company which produce and manufacture product to fulfil the demand of the end consumer. A service-providing organization refers to the company which provide services to the end-consumer by satisfying the needs or want.
Expert Solution & Answer
Explanation of Solution
S is the company which manufactures stainless steel utensils and cutlery. They started their export with merchandise exporting and slowly they began to setup in-house manufacturing unit. The export takes place across different parts of the world majorly USA and Europe. S has a unique pricing strategy which revolves around 1%, 7% and 14% margin model. This means they operate at a very low margin which helps them to attract more customers. The promotion and advertisement is mainly through social media and cold emailing. There are fixed labours in the factory so hiring and firing does not take place and there are no subcontractors needed for the production. They hold inventory for just two to three days and then transport it to customer through sea shipment.
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Students have asked these similar questions
How does aggregate planning in service differ fromaggregate planning in manufacturing?
Develop a chase aggregate plan for Draper using apermanent workforce of 12 employees supplemented by overtime.All demand must be met each period.(a) Show what would happen if this plan were implemented.(b) Calculate the costs associated with this plan.(c) Evaluate the plan in terms of cost, customer service,operations, and human resources.
Develop a level aggregate plan for the Draper Company ifno back orders are permitted.(a) Show what would happen if this plan were implemented.(b) Calculate the costs associated with this plan.(c) Evaluate the plan in terms of cost, customer service,operations, and human resources.
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Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY