A local manufacturer has diversified from three standard products to over fifty products in order to increase his sales revenue. He has found that his production volumes yielded by his existing manufacturing resources have diminished considerably and his levels of Work in Process (WIP) and Finished Goods Inventory have increased considerably. The sales order lead time and speed of customer response of firm has also received strong negative customer criticism. He has also noticed that his return on investment for his enterprise has also reduced. At the moment he uses an Economic Order Quantity (EOQ) approach to calculate his work order batch quantities. Prepare a report explaining the likely cause and potential solutions to this issue Address the following points: 1. As part of your report critique the EOQ calculation method and its decision making implications for this type of production situation Why would a revised lot sizing approach be unlikely to provide an improved performance for the firm? 2. 3. Explain in detail a methodology that will assist with resolving these issues. Explain in detail the associated benefits of the proposed methodology with a particular on the speed of customer response of firm and the return on investment. A local manufacturer has diversified from three standard products to over fifty products in order to increase his sales revenue. He has found that his production volumes yielded by his existing manufacturing resources have diminished considerably and his levels of Work in Process (WIP) and Finished Goods Inventory have increased considerably. The sales order lead time and speed of customer response of firm has also received strong negative customer criticism. He has also noticed that his return on investment for his enterprise has also reduced. At the moment he uses an Economic Order Quantity (EOQ) approach to calculate his work order batch quantities. Prepare a report explaining the likely cause and potential solutions to this issue Address the following points: 1. As part of your report critique the EOQ calculation method and its decision making implications for this type of production situation Why would a revised lot sizing approach be unlikely to provide an improved performance for the firm? 2. 3. Explain in detail a methodology that will assist with resolving these issues. Explain in detail the associated benefits of the proposed methodology with a particular on the speed of customer response of firm and the return on investment