Chapter 13, Problem 10HMP

Explanation of Solution

Diagram of the existing production planning process:

Explanation of Solution

Problems in the existing process of the company:

• Loss of sales due to under production of a product. Its called stock out costs resulting in loss of customers.
• Production planning is not to be based on best guess but on systemic demand forecasting based on fluctuations, market share, and past data.
• Production planning currently relies on historical data only...

Explanation of Solution

Solutions through enterprise system:

• The enterprise system will help to enter real- time data to the system of operation.
• This information can be viewed through an interactive dashboard for the production team to view and plan their processes.
• The data can be helped to manage the inventory process and the stock levels and re-order points of materials can be maintained.
• Demand received through the customer service team can be relied on time to the production and purchasing teams.
• The pre-existing system of a 17-day production planning process can be removed thereby saving a lot of time and cost...