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Midterm Case Case One

Sister Print Company manufactures printer and copier components. It produces 20 items and manages two markets - a major manufacturer and replacement parts retailers. Production planning is based on orders and inventory, not forecasts. Due to declining profits, the manager plans to implement forecasting for two important products to improve planning and reduce stockouts.

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Shaij Sinoy Elentorio
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18 views

Midterm Case Case One

Sister Print Company manufactures printer and copier components. It produces 20 items and manages two markets - a major manufacturer and replacement parts retailers. Production planning is based on orders and inventory, not forecasts. Due to declining profits, the manager plans to implement forecasting for two important products to improve planning and reduce stockouts.

Uploaded by

Shaij Sinoy Elentorio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case One:

SISTER PRINT COMPANY

Sister Print Company manufactures a variety of components for printers and copiers. Apart from supplying
these products to a major manufacturer, the company also distributes them to office supply stores and computer
stores as replacement parts for printers and desktop copiers. Overall, the company produces approximately 20
different items. Managing these two markets—the major manufacturer and the replacement market—requires
different approaches. For instance, replacement products need to be individually packaged, whereas products
are sent in bulk to the major manufacturer.

The company adopts a production planning approach that does not rely on forecasts. Instead, the operations
manager makes decisions on which items to produce and determines the batch size based on orders and
inventory levels. Priority is given to products with lower inventory levels. Demand tends to fluctuate, leading to
occasional overstocking and stockouts. The latter sometimes strains relationships with retail outlet managers.
Additionally, there is a concern about rising raw material prices, although the operations manager considers this
to be a temporary situation.

Due to competitive pressures and declining profits, the manager has decided to implement several changes. One
of these changes involves implementing more structured forecasting procedures to enhance production planning
and inventory management.
With this objective in mind, the manager intends to initiate forecasting for two specific products. These
products hold significant importance for several reasons. Firstly, they contribute significantly to the company's
overall profits. Secondly, the manager anticipates that one of these products will play a crucial role in future
growth strategies. Thirdly, the other product has encountered intermittent instances of stockouts.
The manager has gathered data on the demand for these two products over the past 14 weeks from order
records. The demand data is presented in the following table.

Questions (support your answers with literature)

1. What are some of the potential benefits of a more formalized approach to forecasting?
2. Prepare a weekly forecast for the next four weeks for each product. Briefly explain why you chose
the methods you used.
My compliments to the buyer!

Have you ever wondered how certain sit-down restaurants manage to offer a wide range of menu items and
serve them quickly? Do they have enormous kitchens with a team of chefs bustling around? Or perhaps a few
exceptionally skilled chefs whose hands move faster than the eye can see? It's possible, but not always the case.
In reality, that delicious restaurant dish or dessert you enjoy may have been prepared in a remote kitchen,
partially cooked, then flash-frozen or vacuum-sealed before being shipped to your restaurant, ready for your
order. The final cooking might occur in a microwave oven, resulting in a freshly made dish when served to you.
Surprising? It shouldn't be. Many restaurants, from popular chains like Fuddruckers and Perkins to high-quality
establishments, are opting for outsourcing. Companies like Sara Lee, Land O’ Lakes, and Stockpot Soup
Company in Redwood, Washington, are more than willing to meet this demand. Advertisements in restaurant
trade magazines often highlight phrases like "Hours versus ours" and "Just heat and serve." While it may not be
the same as homemade, restaurants are navigating labor costs, which can amount to about 30 percent of
revenue, and staying competitive in the industry.

Questions: Support your answers with literature.

1. Explain the meaning of the phrase "Hours versus ours." What advantages are there when restaurants
outsource?

2.What are some important disadvantages or limitations of outsourcing for restaurants?

4. Do you consider restaurant outsourcing to be dishonest? Unethical? Explain.

5. Does restaurant outsourcing increase capacity? Explain.

Note:

Use short bondpaper

Times new roman / 12 pts / double space.

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