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Introduction Case study chapter 12 is titled The Realco Breadmaster and Case study chapter 13 is Supply-Chain Challenges in Post-Earthquake Japan. In case study 12 the owner of the Realco Company introduced a new bread maker which turned out to be a very big success story in the United States because it had more suitable features at a better price then other bread makers. In Case study chapter 13 it revolves around the supply challenges in the Japanese automakers plants after the earthquake. It focuses on how Toyota plans to prepare for another disaster in order to avoid more than a two week interruption. An explanation of both cases and response to questions about both cases will be presented and answered.
Chapter 12 Case Study: The Realco Breadmaster
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?
2. Comment on Jack’s approach to order promising. What are the advantages? The disadvantages? How would formal master scheduling improve this process? What organizational changes would be required?
3. Following up on Question 2, which do you think is worse, refusing a customer’s order upfront because you don’t have the units available or accepting the order and then failing to deliver? What are the implications for master scheduling?
4. Suppose Realco produces 20,000 bread makers every week, rather than 40,000 every other week. According to the master schedule record, what impact would this have on average inventory levels?
Master Production Schedule for the bread maker is below.
Week
1
2
3
4
5
6
7
8
Beginning Inventory
7,000
3,500
500
-1000
3950
10,350
18,850
33,450
Booked orders
23,500
23,000
21,500
15,050
13,600
11,500
5,400
1,800
Forecast orders
20,000
20,000
20,000
20,000
20,000
20,000
References: Bozarth, C.C. and Handfield, R.B. (2012). Introduction to operations and supply chain management (3rd ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall Gutiérrez, L., Bustinza, O. F., & Molina, V. (2012). Six sigma, absorptive capacity and organisational learning orientation. International Journal Of Production Research, 50(3), 661-675 Robinson, E., Sahin, F., & Gao, L. (2008). Master production schedule time interval strategies in make-to-order supply chains. International Journal Of Production Research, 46(7) TOKYO FIGHTS BACK; JAPANESE AUTOMAKERS TRY TO OVERCOME EFFECTS OF TSUNAMI. (2013). AutoWeek, (24)