Boekenhoutskloof Boekenhoutskloof was established in 1776. Located in the furthest corner of the beautiful Franschhoek valley, the farm’s name means “ravine of the Boekenhout” (pronounced Book-n-Howed). Boekenhout is an indigenous Cape Beech tree greatly prized for furniture making. In 1993 the farm and homestead were bought and restored and a new vineyard planting programme was established that now includes Syrah, Cabernet Sauvignon, Cabernet Franc, Grenache, Semillon and Viognier. As a producer, Boekenhoutskloof is a Syrah specialist, with its premium Boekenhoutskloof range selling out on the release of each vintage, and The Chocolate Block – a Syrah based blend – is probably the most successful new wine offering to come out of South Africa in the modern era. The quest to understand the name of this wine and the wine itself is now the stuff of legend. While we are not about to reveal all, we can say that the style of the wine is a reflection of our belief that the Cape, with its Mediterranean climate, is eminently suited to blended reds. The make-up of this wine is tweaked from vintage to vintage to best reflect the season and the ancient vines of great character that are an integral part of the wine’s charm and personality. The Wolftrap brand of blended Rhone-style wines was inspired by the pioneering spirit of the early settlers who built what is now a monument to their adventurous spirit. The Porcupine Ridge range of delicious, everyday wines is a firm favourite on tables throughout the world – offering great value and superb drinking.   Therefore, the planning and forecasting for inventory must be precise and accurate to ensure that customer demands are sufficiently anticipated and met. This implies that there is to be an understanding of customer demand for a good or service which will then inform the quantity of raw material required from suppliers(s) and thus the capacity, labour and capital investment required to transform raw materials into the required finished goods or service.” Ramgovind, 2021:213). For business like Boekenhoutskloof, which supplies products locally and globally, it could be difficult to forecast accurately and run the operation effectively. However, with elaborate efforts and accurate information , business could save Operational costs , meet requirements better than competitors and achieve growth. It is important for organising to adopt system which plans and replenish , thereby ensuring continuous supply of material required for the purchase production of final products. Q.1.1 Distinguish between continuous review model and periodic review model, and recommend the best approach that Boekenhoutsloof can adpot effective . Q.1.2. Analyse below two benefits and any two weakness of JIT system and discuss why you still feel that implementating this system would improve efficiency at boekenhoutsloof. Benefits of JIT system  1. It reduce lot sizes required in production and purchasing  2. It reduces lead time  Weakness of JIT system  1. It is sensitive to errors, especially regarding customer orders  2. JIT production cannot easily  adapt to sudden increase in quantity of demand due to minimum level of inventory being

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

Boekenhoutskloof

Boekenhoutskloof was established in 1776. Located in the furthest corner of the beautiful Franschhoek valley, the farm’s name means “ravine of the Boekenhout” (pronounced Book-n-Howed). Boekenhout is an indigenous Cape Beech tree greatly prized for furniture making. In 1993 the farm and homestead were bought and restored and a new vineyard planting programme was established that now includes Syrah, Cabernet Sauvignon, Cabernet Franc, Grenache, Semillon and Viognier.

As a producer, Boekenhoutskloof is a Syrah specialist, with its premium Boekenhoutskloof range selling out on the release of each vintage, and The Chocolate Block – a Syrah based blend – is probably the most successful new wine offering to come out of South Africa in the modern era. The quest to understand the name of this wine and the wine itself is now the stuff of legend. While we are not about to reveal all, we can say that the style of the wine is a reflection of our belief that the Cape, with its Mediterranean climate, is eminently suited to blended reds. The make-up of this wine is tweaked from vintage to vintage to best reflect the season and the ancient vines of great character that are an integral part of the wine’s charm and personality.

The Wolftrap brand of blended Rhone-style wines was inspired by the pioneering spirit of the early settlers who built what is now a monument to their adventurous spirit. The Porcupine Ridge range of delicious, everyday wines is a firm favourite on tables throughout the world – offering great value and superb drinking.

 

Therefore, the planning and forecasting for inventory must be precise and accurate to ensure that customer demands are sufficiently anticipated and met. This implies that there is to be an understanding of customer demand for a good or service which will then inform the quantity of raw material required from suppliers(s) and thus the capacity, labour and capital investment required to transform raw materials into the required finished goods or service.” Ramgovind, 2021:213).

For business like Boekenhoutskloof, which supplies products locally and globally, it could be difficult to forecast accurately and run the operation effectively. However, with elaborate efforts and accurate information , business could save Operational costs , meet requirements better than competitors and achieve growth.

It is important for organising to adopt system which plans and replenish , thereby ensuring continuous supply of material required for the purchase production of final products.

Q.1.1 Distinguish between continuous review model and periodic review model, and recommend the best approach that Boekenhoutsloof can adpot effective .

Q.1.2. Analyse below two benefits and any two weakness of JIT system and discuss why you still feel that implementating this system would improve efficiency at boekenhoutsloof.

Benefits of JIT system 

1. It reduce lot sizes required in production and purchasing 

2. It reduces lead time 

Weakness of JIT system 

1. It is sensitive to errors, especially regarding customer orders 

2. JIT production cannot easily  adapt to sudden increase in quantity of demand due to minimum level of inventory being 

 

Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Financial statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.