Chapter 15case Study Essay

1022 Words Nov 9th, 2012 5 Pages
The Realco Breadmaster

Introduction
Case 15 is titled The Realco Breadmaster while case 16 is titled A Bumpy Road for Toyota.According to case 15, Johnny Chang, the owner of Realco Company developed a new bread maker which became a big success across the U. S because of its competitive features and pricing. The major issue revolving around the case is that the product lacked formal planning. According to case 15, the issue revolves around the fact that Toyota Company has a highly ambitious growth agenda that seems to strain the technical and human resources as well as undercutting quality. Other additional issues include language barriers and lack of time, which have resulted to production problems. An examination of the two cases and
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The weekly production is 40, 000 while the assumed demand per week is about 20,000 bread-makers. The production numbers could be adjusted to about 25,000 bread-makers. This is owed to the fact that the highest current order according to Jack Jones is 23, 500.

Question 2
The core of the demand fulfillment process is order promising, whose goal is to create reliable promises for the customer orders. The order promising process quality is measured by the delivery performance and the on time delivery. The order promising approach used by Jack Jones is the batch order promising. Under this approach, customer orders are entered into the sales transaction system, and a promise is not generated. The order promising is triggered at certain periods, and in his case, it is once a week. Hence, Jack has entered the customer order details for the number of shipments promised on weekly basis. One advantage of this approach is that it is cost effective. This is due to the fact that it is much cheaper to produce a whole batch of a given product compared to production of each single order. One disadvantage that is worth noting is that, the approach may result to overhead production, whereby the production may exceed the actual demand. Moreover, this approach may lead to loss of customers and market share due to failure to meet individual tastes and preferences (Bundy, 1999).

Formal master scheduling would improve the process by keeping control and accountability of the entire

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