Inventory Management/Operation Management

Inventory Management/Operation Management

Introduction

There are two cases being discussed in this paper, one being the Realco Bread master, and the other is A Bumpy Road for Toyota. In the bread master case, the owner of the company established a new bread maker that became a huge success in the United States because of its viable features, and pricing. The major concern surrounding the case is that there was no proper planning for the product. In the Toyota case, the company is highly optimistic about growth which has had its tool on the technical and human resource which has in turn compromised the quality. In addition to this, there are language confusions, and shortage of time which have cause production troubles. The paper presents the issues, and its solutions.

Case Study- The RealCo Bread Master

Part 1

A master production schedule is the plan created by an organization for human resources, production, stocking, and other variables (Ferrer & Whybark, 2009, pp.112-124). The information that can inputted as data can be cost of production, demand forecasts, inventory costs, and other significant costs. The output of the system gives information of the production levels, and the requirement of labor for a particular period of time. The plan is a cost cutting measure, which tries to achieve the targets at the least possible costs.

The master manufacturing schedule will be as follows:

 

1st Week

2nd Week

3rd Week

4th Week

5th Week

6th Week

7th Week

8th Week

Demand

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weekly Demand

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

 

 

 

 

 

 

 

 

 

Week Activity Days

6

6

6

6

6

6

6

6

 

 

 

 

 

 

 

 

 

MPS demand for the product

3,333

3,333

3,333

3,333

3,333

3,333

3,333

3,333

The company should increase the production numbers as the available numbers make it clear that it has manufactured more than the demand expected. The weekly manufacturing is 40,000 while the supposed demand every week is approximately 20,000 bread makers. The numbers could be altered to 25,000 bread makers. This is due to the fact that the largest current order is 23,500.

Part 2

The main feature of the demand fulfillment procedure is order promising, the main aim is to develop warranted guarantees for the customer orders. The procedure of order promising is gauged by the delivery presentation, and on time execution. The order promising method employed by Jack Jones is the batch order promising. In this method, the customer orders are put inside the sales transaction system, and a promise is produced. The order promising is activated at particular periods, and for his situation, it is at one time a week. Thus, Jack has dropped in the client request items for the amount of shipments guaranteed on week after week support. One plus point of this methodology is that it is financially savvy. This is because of the way that it costs much less to generate an entire group of a given item contrasted with generation of every single request. One impediment that is worth noting is that, the methodology may come about to overhead handling, whereby the production may surpass the true demand. Also, this methodology may prompt misfortune of clients and piece of the overall industry because of disappointment to meet unique tastes and inclination (Gudehus & Kotzab, ...