CASE STUDY REALCO BREADMAKER
Case Studies
BUS 307 Operations Management & Quantitative Techniques
Feb 10, 2014
Case Studies
Chapter 12 Case Study: The Realco Breadmaker
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?
A master production schedule for the bread-maker will be presented below. Demand Management Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8. Weekly demand for bread-maker is 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000. Working days in a week is 6 6 6 6 6 6 6 6. MPS demand for bread-maker 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333.
Realco Company should update the production numbers since from the available figures, it is clear that the bread-makers produced are far much greater than the demand anticipated. The weekly production is 40, 000 while the assumed demand per week is about 20,000 bread-makers. The production numbers could be adjusted to about 25,000 bread-makers. This is owed to the fact that the highest current order according to Jack Jones is 23, 500.
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?
One advantage of this approach is that it is cost effective. This is due to the fact that it is much cheaper to produce a whole batch of a given product compared to production of each single order. One disadvantage that is worth noting is that, the approach may result to overhead production, whereby the production may exceed the actual demand. Moreover, this approach may lead to loss of customers and market share due to failure to meet individual tastes and preferences (Bundy, 1999).
Formal master scheduling would improve the process by keeping
BUS 307 Operations Management & Quantitative Techniques
Feb 10, 2014
Case Studies
Chapter 12 Case Study: The Realco Breadmaker
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?
A master production schedule for the bread-maker will be presented below. Demand Management Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8. Weekly demand for bread-maker is 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000. Working days in a week is 6 6 6 6 6 6 6 6. MPS demand for bread-maker 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333.
Realco Company should update the production numbers since from the available figures, it is clear that the bread-makers produced are far much greater than the demand anticipated. The weekly production is 40, 000 while the assumed demand per week is about 20,000 bread-makers. The production numbers could be adjusted to about 25,000 bread-makers. This is owed to the fact that the highest current order according to Jack Jones is 23, 500.
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?
One advantage of this approach is that it is cost effective. This is due to the fact that it is much cheaper to produce a whole batch of a given product compared to production of each single order. One disadvantage that is worth noting is that, the approach may result to overhead production, whereby the production may exceed the actual demand. Moreover, this approach may lead to loss of customers and market share due to failure to meet individual tastes and preferences (Bundy, 1999).
Formal master scheduling would improve the process by keeping
References: Abdulmalek, F. A., & Rajgopal, J. (2007). Analyzing the benefits of lean manufacturing and value stream mapping via simulation: a process sector case study Bozarth, C.C., and Handfield, R.B. (2008). Introduction to operations and supply chain management (2nd ed.) Bundy, W. (Spring 1999) “Miller SQA: Leveraging Technology for Speed and Reliability Christopher, M., & Towill, D. R. (2000). Supply chain migration from lean and functional to agile and customized Cox, J. F., & Blackstone J. H., eds. (2002). APICS Dictionary (10th Ed).Falls Church, VA: APICS. Shah, R., & Ward, P. T. (2007). Defining and developing measures of lean production. Journal of operations management, 25(4), 785-805