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Discuss THREE (3) potential benefits Santa Cruz will gain once they used enter- prise application as discussed in Q2(b). (c)

Discuss THREE (3) potential benefits Santa Cruz will gain once they used enter- prise application as discussed in Q2(b). (c)

Practical Management Science
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...
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(a) Discuss TWO (2) main challenges facing by Santa Cruz. (b) Suggest enterprise applications that should be used by Santa Cruz to overcome chal- lenges discussed in Q2(a). Q2 Santa Cruz is a bike company based in Santa Cruz, California founded in a place where all the good ideas take shape, a car garage. They make bikes for families, kids, and old people. Santa Cruz's supply and distribution chains span the globe, and the company must coordinate manufacturing, assembly, sales and distribution sites in many different coun- tries. Santa Cruz produces more than 100 different bicycle models each year; 60 percent of these are newly introduced to meet ever-changing customer preferences. Santa Cruz offers both make-to-stock and make-to-order models. A typical bicycle requires a 150- day lead time and a four-week manufacturing window, and some models have bills of materials with over 150 parts. Santa Cruz must manage more than 1 million of these bills of materials and more than 200,000 individual parts. Some of these parts come from spe- cialty vendors with even longer lead times and limited production capacity. Obviously, managing parts availability in a constantly changing product line impacted by volatile customer demand requires a great deal of manufacturing flexibility. Úntil recently, that flexibility was missing. Santa Cruz had an antiquated legacy material requirement plan- ning system for planning production, controlling inventory, and managing manufacturing processes that could only produce reports on a weekly basis. The company was forced to substitute parts to meet demand, and sometimes it lost sales. Santa Cruz needed a solution that could track the flow of parts more accurately, support its need for flexibility, and work with its existing business systems, all within a restricted budget. Santa Cruz needs system that could give accurate and detailed supply chain information via an easy-to-use spreadsheet interface, using data supplied automatically from Santa Cruz's existing man- ufacturing systems. Data from operations at multiple sites are assembled in a single place for analysis and decision making. The system should also be able to model manufacturing and inventory data in "what-if" scenarios to see the impact of alternative actions across the entire supply chain. Old forecasts can be compared to new ones, and the system can evaluate the constraints of a new plan. Based on above case study, answer the following questions: (c) Discuss THREE (3) potential benefits Santa Cruz will gain once they used enter- prise application as discussed in Q2(b). |
Transcribed Image Text:(a) Discuss TWO (2) main challenges facing by Santa Cruz. (b) Suggest enterprise applications that should be used by Santa Cruz to overcome chal- lenges discussed in Q2(a). Q2 Santa Cruz is a bike company based in Santa Cruz, California founded in a place where all the good ideas take shape, a car garage. They make bikes for families, kids, and old people. Santa Cruz's supply and distribution chains span the globe, and the company must coordinate manufacturing, assembly, sales and distribution sites in many different coun- tries. Santa Cruz produces more than 100 different bicycle models each year; 60 percent of these are newly introduced to meet ever-changing customer preferences. Santa Cruz offers both make-to-stock and make-to-order models. A typical bicycle requires a 150- day lead time and a four-week manufacturing window, and some models have bills of materials with over 150 parts. Santa Cruz must manage more than 1 million of these bills of materials and more than 200,000 individual parts. Some of these parts come from spe- cialty vendors with even longer lead times and limited production capacity. Obviously, managing parts availability in a constantly changing product line impacted by volatile customer demand requires a great deal of manufacturing flexibility. Úntil recently, that flexibility was missing. Santa Cruz had an antiquated legacy material requirement plan- ning system for planning production, controlling inventory, and managing manufacturing processes that could only produce reports on a weekly basis. The company was forced to substitute parts to meet demand, and sometimes it lost sales. Santa Cruz needed a solution that could track the flow of parts more accurately, support its need for flexibility, and work with its existing business systems, all within a restricted budget. Santa Cruz needs system that could give accurate and detailed supply chain information via an easy-to-use spreadsheet interface, using data supplied automatically from Santa Cruz's existing man- ufacturing systems. Data from operations at multiple sites are assembled in a single place for analysis and decision making. The system should also be able to model manufacturing and inventory data in "what-if" scenarios to see the impact of alternative actions across the entire supply chain. Old forecasts can be compared to new ones, and the system can evaluate the constraints of a new plan. Based on above case study, answer the following questions: (c) Discuss THREE (3) potential benefits Santa Cruz will gain once they used enter- prise application as discussed in Q2(b). |
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