You are the branch operations manager for a leading manufacturing company. The following are the bill of materials (BOM), Master Production Schedule, and Inventory Record Sheet for one of your products.
BOM Product: Travel Coffee Cup Item Quantity Required Rubber coaster 1 Handle 1 Insulated insert 1 Exterior cup form 1 Lid 1
Master Production Schedule Travel Coffee Cup Week 1 2 3 4 5 6 600 550 700 475 500 800
Inventory Record Sheet Item On-Hand Balance Lead Time (in weeks) Rubber coaster 75 4 Handle 200 3 Insulated insert 150 7 Exterior cup form 250 1 Lid 100 6
Perform an analysis to determine the appropriate quantities of materials to be ordered or made and the lead time phasing to:
Ensure that appropriate quantities of materials are ordered at the appropriate time. Ensure the availability of the materials on hand for production.
Create a report to present the results to your area head. Your analysis should include the following:
What quantity do you recommend? Why? How did you arrive at the appropriate quantity of materials to be ordered or made? What measures do you suggest to ensure that appropriate quantities are ordered at a particular time? How will your measures ensure the availability of the materials on hand for production? How will you account for any wastage? If the demand for a product increases suddenly, how will you account for the sudden need of materials?