Diagram of the existing production planning process:

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Chapter 13, Problem 10HMP

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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...

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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...

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