Agbu, Diana Mei

Apal, Christine Mae

Genalo, Shanie Vhe
CASE STUDY
LEVEL OPERATIONS

I. Point of View
The case is told from the perspective of Production manager Stephanie Coles.

II. Problem
What might Stephanie determine as the best production quantity per cycle for each day
of the week?
III. Objective

To figure out what the best production quantity per cycle is for each day of the week.

Promotional Novelties

I. Point of View
This is from the perspective of the company's manager.

II. Problem
The manager has an issue with the wheel department since the firm does not
have enough wheels to build toy tractor-trailers.
III. Objective
 To look for additional options in order to fulfill the necessary number of wheels
for their activities.
 To arrive on time with the ordered toy tractor-trailers.
 To determine the number of wheels they needed to order from their suppliers.

IV. Areas of Consideration

Strength
 The company's management can keep track of which parts of the firm are having
issues.
The firm has corporate clients that have put their faith in them for the things they
provide in the market.
Weakness
Due to the company's restricted supply, the manufacturing and delivery of their
clients' orders may be hampered.
Opportunity
When there is a lack of wheels, the corporation might order them from other
suppliers.

Threats
The company's issue may be that it uses its competition to influence clients.
The corporation cannot forecast the rise and fall in the pricing of the equipment
and tools required for manufacturing.

V. Alternative course of action

The firm should do an inventory and supply analysis to ensure that they do not
have restricted resources for their operations.

VI. Conclusion/ Recommendation

We are all aware that consumers will always be one of a company's top
concerns. No surprise, in this situation, the company's management is
supervising the operation of their firm to correctly complete and give their
customers' orders without any delays. In this scenario, the manager detects a
scarce resource on one of its materials. The manager is watching how many
orders the firm requires to complete the manufacture of their items that their
 clients have purchased. The management may boost their efficiency and prepare
the inventory and supplies that the organization need for future operations by
using Material Requirements Planning.

HARVEY INDUSTRIES

I. Point of View
This scenario is based on the manager's point of view.

II. Problem
Harvey Industries is experiencing inventory management issues as a result of a lack of
effective control and management procedures.
III. Objective
 To determine the best or most appropriate way for improving the inventory control
system's efficiency and effectiveness.

IV. Areas of consideration

The company must evaluate the appropriate inventory level, order cost, which is defined
by the number of orders, and discount rate, which is determined by the quantity of goods
offered. Furthermore, the current time is equally important when waiting for an item to
go out of stock and then return. This causes delays in the company's operations, exposing
it to opportunity cost. The company should examine and evaluate the demand cycle to
ensure that enough stock is kept on hand during high demand periods.

V. Alternative course of action

The organization could benefit from an economic order quantity (EOQ) strategy. A
corporation determines how many products it should buy with each order and how many
orders it should place each year using the economic order quantity (EOQ) model. The
strategy is beneficial in that it helps the organization to reduce ordering and storage costs
while maintaining quality. Still, it'll be able to keep enough goods on hand to meet
demand, and it'll be able to take advantage of quantity discounts (Kumar, 2008). Regular
internal checks and controls will help the company better manage its inventory by
ensuring that the stock-taking procedures are appropriate. Checking and evaluating will
promote accountability and avoid inventory losses due to poor inventory management.
Companies may investigate lower-cost alternatives to their parts in order to save money on
purchases
VI. Conclusion/recommendation

To improve the current inventory control system, the new president should examine the
following: the company should build an inventory control system that stores data in a
computer because the company has been utilizing manual procedures with complex paper
processes and time-consuming processing. Setting up a cycle count might also help you
keep track of and manage your inventory. Furthermore, the ABC inventory is used. It is
necessary to have a classification system. The ABC analysis enables the organization to
determine the right level of control for each item in terms of order amount and frequency.