Introduction Company T is engaged in the manufacturing of toys and board games. The firm is known for its innovations and quality products. The company sales had declined during the past six months. Person ME, who is the production manager , attributed the economy for the decline in sales. He undertook some measures like cutting down production costs, and laying employees off in the design and product development departments, but all the efforts did not contribute to the growth in the profit. The vice president of sales has been concerned with the customer complaints. Person KM, the assistant of the vice president, suggested making a trade-off for the defective products by getting back the defective items from the customer and providing a new one, which would please the dissatisfied customer. The defective items can be repaired and could be sold at adiscounted price. Person SB, the production assistant, suggested to increase the level of inspection. With 100% level of inspection the number of defectives could be reduced. To determine : The recommendations to the company as a consultant.

Question

Want to see the full answer?

Answer 1

Question

Chapter 10, Problem 1.1CQ

Summary Introduction

Introduction

Company T is engaged in the manufacturing of toys and board games. The firm is known for its innovations and quality products. The company sales had declined during the past six months. Person ME, who is the production manager, attributed the economy for the decline in sales. He undertook some measures like cutting down production costs, and laying employees off in the design and product development departments, but all the efforts did not contribute to the growth in the profit.

The vice president of sales has been concerned with the customer complaints. Person KM, the assistant of the vice president, suggested making a trade-off for the defective products by getting back the defective items from the customer and providing a new one, which would please the dissatisfied customer. The defective items can be repaired and could be sold at adiscounted price.

Person SB, the production assistant, suggested to increase the level of inspection. With 100% level of inspection the number of defectives could be reduced.

To determine: The recommendations to the company as a consultant.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

By selecting Cigna Accredo pharmacy that i identify in my resand compare the current feedback system against the “Characteristics of a Good Multiple Source Feedback Systems” described in section 8-3-3. What can be improved? As a consultant, what recommendations would you make?

Scenario You have been given a task to create a demand forecast for the second year of sales of a premium outdoor grill. Accurate forecasts are important for many reasons, including for the company to ensure they have the materials they need to create the products required in a certain period of time. Your objective is to minimize the forecast error, which will be measured using the Mean Absolute Percentage Error (MAPE) with a goal of being below 25%. You have historical monthly sales data for the past year and access to software that provides forecasts based on five different forecasting techniques (Naïve, 3-Month Moving Average, Exponential Smoothing for .2, Exponential Smooth for .5, and Seasonal) to help determine the best forecast for that particular month. Based on the given data, you will identify trends and patterns to create a more accurate forecast. Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next…

Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next month. Remember to select the forecasting technique that produces the forecast error nearest to zero. For example: a. Naïve Forecast is 230 and the Forecast Error is -15. b. 3-Month Moving Forecast is 290 and the Forecast Error is -75. c. Exponential Smoothing Forecast for .2 is 308 and the Forecast Error is -93. d. Exponential Smoothing Forecast for .5 is 279 and the Forecast Error is -64. e. Seasonal Forecast is 297 and the Forecast Error is -82. The forecast for the next month would be 230 as the Naïve Forecast had the Forecast Error closest to zero with a -15. This forecasting technique was the best performing technique for that month. You do not need to do any external analysis-the forecast error for each strategy is already calculated for you in the tables below. Naïve Month Period Actual Demand Naïve Forecast Error 3- Month Moving Forecast 3- Month Moving…