A) Electronics Galore wishes to explore a Chase strategy and reduce their current inventory of 5.000 units of finished goods in stock to 2,000 by the end of the period. Use ending inventory to calculate carrying costs. Data COGS $25.00 Beginning work force 50 employees Hiring cost S400 per employee Work Hours per month 160 Firing cost $800 per worker Carrying costs 25% per year Work Standard 2 hrs per pc. Labor rate S26/hr Sales Chase Month Forecast Productio Inventory boventory of Hacer HF cast Payroll Total Man Costs workers Fire Oct 7.500 Nov 8,500 Dec 11,000 What is the total cost of this plan for the 3 months? (7 marks) B) Electronics Galore also wishes to investigate a Level strategy and reduce their current inventory of 5.000 units of finished goods in stock to 2,000 by the end of the quarter. Use ending inventory to calculate carrying costs. Level Month Forecast Productio foventory Inventory of Hire HF Payroll Total Sales Costs workers Fire Och 7,500 Nov 8.500 Dec 11,000 Using the same data above, what is the total cost of this plan for the 3 months? (7 marks) C) Which of the two plans would you recommend and why? (2 marks) Case 2 - RCCP (29 marks) ALL WORK TO BE COMPLETED IN EXCEL- WORD DOCUMENT WILL NOT BE MARKED! Electronics Galore was having some trouble meeting customer requirements. Their on-time delivery was 75% and it had not improved in several weeks. Customers were calling in and threatening to cancel orders unless something drastic changed and they got their products on-time. Tim in Marketing was always complaining that production just did not understand how to satisfy the customer. Tim said, "The customer requirements should be our #1 priority. I wish C) Which of the two plans would you recommend and why? (2 marks) Case 2 - RCCP (29 marks) ALL WORK TO BE COMPLETED IN EXCEL- WORD DOCUMENT WILL NOT BE MARKED! Electronics Galore was having some trouble meeting customer requirements. Their on-time delivery was 75% and it had not improved in several weeks. Customers were calling in and threatening to cancel orders unless something drastic changed and they got their products on-time. Tim in Marketing was always complaining that production just did not understand how to satisfy the customer. Tim said, "The customer requirements should be our #1 priority. I wish production could see how their inefficiencies are impacting the customer. I am spending most of my days talking customers out of cancelling orders." Marvin in Production was tired of the constant badgering by Tim about the status of orders. "Marketing has got to quit taking orders for immediate delivery. Our manufacturing lead time is 2 weeks, and it takes another 2 weeks to get Purchased parts. Not all customers can possibly be a priority and this constant firefighting is wearing me down! Marvin was also being questioned by the Human Resources departments about the increase in trip and fall injuries in the plant due to the large amount of inventory in the plant. He had been in Joanne's Purchasing office telling her to slow the flow of raw material into the facility because they were running out of space. In the next hour he was back in her office trying to find out why the back panels for the stereos were not in inventory and "I have nothing for my workers to do." Brian, the General Manager had had enough. We need to start meeting customer requirements or we will all be looking for a job! Let's get a Supply Chain Management graduate student to come in here with fresh eyes on the problem and help us get back on track." Rose Menard was hired. She knew the information required to help her solve these issues from the Master Planning course she had taken at Conestoga College. She could not wait to apply the theory she had learned in class to solve this company's problem. The first place she investigated was the work center that seemed to be holding up production. She knew she should start there to focus the rough-cut capacity planning on. She went out to the facility and looked for the largest amount of queue and found that work center to be the assembly of the Stereos. This was where she therefore decided to focus her efforts Thon The MPS and information are in exhibit 1. Questions to Answer 1. Complete Exhibit 1, the RCCP with the current MPS in excel. (6 marks) 2 What observations and recommendations do you have based on the RCCP? Be specific utilizing exhibit 1 (i.e., identify over/under quantities). (4 marks) Note: Put in textbox in excel file 3. Rebalance based on your recommendations in the excel worksheets. Formatting professionally is worth 2 marks (9 marks) Hint-The next 2 questions are moving beyond the current situation to fixing problems in the organization going forward to meet customer demand consistently in the future. 4. Given the current MPS and the facts from the case, what are the two root cause issues or problems that need to be addressed to fix Electronics Galore's problems in customer service? Justify your answer. (4 marks) 5. What are your recommendations to improve customer delivery performance for Electronics Galore? Please be sure to include any procedural changes, who would be involved, how these will be implemented and how you will measure success. 1 am expecting to see some implementation of theory of good master scheduling practices here. There should be at least 2 recommendations discussed. (6 marks) Hint-Don't tell me again how you will rebalance - how will you fix the problems so that going forward we meet customer demand. Version B 14 EI onics Galore Current MPS - Exhibit 1 12 Original MIPS Corrective Action to Rettance 14 ST 12 0 14 05 Total Product Al 50 so 25 073 5. What are your recommendations to improve customer delivery performance for Electronics Galore? Please be sure to include any procedural changes, who would be involved, how these will be implemented and how you will measure success. I am expecting to see some implementation of theory of good master scheduling practices here. There should be at least 2 recommendations discussed. (6 marks) Hint-Don't tell me again how you will rebalance - how will you fix the problems so that going forward we meet customer demand. Version B 14 Electronics Galore Current MPS - Exhibiti Original MPS Corrective Action to Rebalance Week 12 13 14 Total 12 13 14 15 Total Product A 50 50 23195 30 20 35 135 130 35 45 509165 . B c RCCP Report 12 13 14 15 12 13 14 15 A B Lead Capacity Available Under Over) Data Sud Hes Product Unit A 17 B C 13 Eficiency Scras 365 2% SOS 99% There are 6 employees that work from 7:30 am - 4:00 pm from Monday to Friday. They have 1 hour lunch per shift and 2-15 minute breaks. The company encourages lean and they have weekly 2-hour continuous improvement meetings with all employees. Preventative maintenance is done for 8 hours per week. Although they are working on improvements, they average 2 hours of machine breakdowns per week. Version B 14 Version B 14