Premium Essay

The Realco Breadmaker

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Submitted By tyronen07
Words 2288
Pages 10
BUS307- Operations Management & Quantitative Techniques
Ashford University
Student: Tyrone A. Neal
Instructor: Judith Ray
Date: 6/3/2012

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 responses to specific questions will be presented.

Case 15: The Realco Breadmaster
1. Develop a master production schedule for the breadmaker. What do the projected ending inventory and available-to-promise numbers look like? Has Realco “overpromised”? In your view, should Realco update either the forecast or the production numbers?
A master production schedule for the bread-maker will be presented below.
Demand Management Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
Weekly demand for bread-maker 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Working days in a week 6 6 6 6 6 6 6 6
MPS demand for bread-maker 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333

Realco Company should update the production numbers since from the available figures, it is clear that the bread-makers produced are far much greater than the demand anticipated. The weekly production is 40, 000 while the assumed demand per week is about 20,000 bread-makers. The production numbers could be

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