OtherPapers.com - Other Term Papers and Free Essays
Search

Bradford Manufacturing-Planning Plant Production

Essay by   •  March 14, 2011  •  Essay  •  790 Words (4 Pages)  •  4,250 Views

Essay Preview: Bradford Manufacturing-Planning Plant Production

Report this essay
Page 1 of 4

BRADFORD MANUFACTURING-PLANNING PLANT PRODUCTION

THE SITUATION

You are the operations manager for a manufacturing plant that produces pudding food products. One of your important responsibilities is to prepare an aggregate plan for the plant. This plan is an important input into the annual budget process. The plan provides information on production rates, manufacturing labor requirements, and projected finished goods inventory levels for the next year.

You make those little boxes of pudding mix on packaging lines in your plant. A packaging line has a number of machines that are linked by conveyors. At the start of the line the pudding is mixed; it is then placed in small packets. These packets are inserted into the small pudding boxes, which are collected and placed in cases that hold 48 boxes of pudding. Finally, 160 cases are collected and put on a pallet. The pallets are staged in a shipping area from which they are sent to four distribution centers. Over the years, the technology of the packaging lines has improved so that all the different flavors can be made in relatively small batches with no setup time to switch between flavors. The plant has 15 of these lines, but currently only 10 are being used. Six employees are required to run each line.

The demand for this product fluctuates from month to month. In addition, there is a seasonal component, with peak sales before Thanksgiving, Christmas, and Easter each year. To complicate matters, at the end of the first quarter of each year, the marketing group runs a promotion in which special deal~ are made for large purchases. Business is going well, and the company has been experiencing a general increase in sales.

The plant sends product to four large distribution warehouses strategically located in the United States. Trucks move product daily. The amounts shipped are based on maintaining target inventory levels at the warehouses. These targets are calculated based on anticipated weeks of supply at each warehouse. Current targets are set at two weeks of supply.

In the past, the company has had a policy of producing very close to what it expects sales to be because of limited capacity for storing finished goods. Production capacity has been adequate to support this policy.

Forecast Demand by Quarter (1000 Case Units)

A sales forecast for next year has been prepared by the marketing department. The forecast is based on quarterly sales quotas, which are used to set up an incentive program for the salespeople. Sales are mainly to the large U.S. retail grocers. The pudding is shipped to the grocers from the distribution warehouses based on orders taken by the salesĀ¬people.

...

...

Download as:   txt (4.7 Kb)   pdf (82.3 Kb)   docx (10.7 Kb)  
Continue for 3 more pages »
Only available on OtherPapers.com
Citation Generator

(2011, 03). Bradford Manufacturing-Planning Plant Production. OtherPapers.com. Retrieved 03, 2011, from https://www.otherpapers.com/essay/Bradford-Manufacturing-Planning-Plant-Production/880.html

"Bradford Manufacturing-Planning Plant Production" OtherPapers.com. 03 2011. 2011. 03 2011 <https://www.otherpapers.com/essay/Bradford-Manufacturing-Planning-Plant-Production/880.html>.

"Bradford Manufacturing-Planning Plant Production." OtherPapers.com. OtherPapers.com, 03 2011. Web. 03 2011. <https://www.otherpapers.com/essay/Bradford-Manufacturing-Planning-Plant-Production/880.html>.

"Bradford Manufacturing-Planning Plant Production." OtherPapers.com. 03, 2011. Accessed 03, 2011. https://www.otherpapers.com/essay/Bradford-Manufacturing-Planning-Plant-Production/880.html.