Bliss Creations Case - The Future is so bright I have to wear shades You have joined a small but established company, Bliss Creations, in Lansing, Michigan making Bimini tops for the boating industry. These covers have become a must have item for every boat. Most new boats have an option to purchase them and there is a small replacement market for those damaged during extreme winds. It was a remarkable opportunity to join small firm and start to apply the practices you learned in during your time in collage. Your responsibility is to manage for the portion of the facility that focuses on their contracts with several high-end manufacturers prioritizing the quality and fit that exceeds customers standards. Due to patented engineering and high-quality designs, only 2% are aftermarket replacements. Bliss Creations offer several models of premium Bimini Covers and are sold to manufacturers and distributers at the same price. After market, at retail, units reach a price point as high as $1250.00 depending on several factors. Canopies are available in nine fabrics, which impact inventory. All fabrics are the same cost. The Aluminum poles and all hardware are offered in three finishes. White, black, and metal (silver). Market Sales by Color Metal (Silver) = 65% White = 30% Black = 5% The company is experiences seasonality related to the demand of the product and production increases in the fall and winter to me the Midwest summer demands. Manufacturing in the spring months are soft because Northern Manufacturers have already produced inventory for the spring market. Production increases again in the summer as manufacturers are busy producing for the southern market increase when the population swells in the southern states. Marketing is optimistic that they can grow the market if production can properly manage their costs and meet forecasting. Market forecasts have proven to be 85% accurate. Which is remarkable and operations has been challenged to develop the capability to meet demand which could grow (or shrink) by 15% with little notice. This has caused numerous supply Chain challenges. Demand Month Forecast January 30,000 February 31,500 March 35,000 April 37,000 May 22,000 June 18,000 July 17,500 August 27,000 September 38,000 October 40,000 November 42,000 December 40,000 DATA Manufacturing cost per cover $74.50 Holding Costs per cover/per month $8.00 Labor Hours available per employee per month 160 hours Labor Hours required per cover 0.25 hours Plant Capacity 35,000/covers per month Cost to Hire and Train $1,250 Layoff Cost $500 Beginning/Ending Work Force 50 Beginning Inventory 10,000 Assignment: 1. Calculate, a Level production plan for Bliss Creations. a. What are the advantages/disadvantages of the plan b. Could you implement a chase production plan based upon your current capacity? c. What if sales continue to grow what are the implications for production capacity at Bliss?

Bliss Creations Case - The Future is so bright I have to wear shades You have joined a small but established company, Bliss Creations, in Lansing, Michigan making Bimini tops for the boating industry. These covers have become a "must have item" for every boat. Most new boats have an option to purchase them and there is a small replacement market for those damaged during extreme winds. It was a remarkable opportunity to join small firm and start to apply the practices you learned in during your time in collage. Your responsibility is to manage for the portion of the facility that focuses on their contracts with several high-end manufacturers prioritizing the quality and fit that exceeds customers standards. Due to patented engineering and highquality designs, only 2% are aftermarket replacements. Bliss Creations offer several models of premium Bimini Covers and are sold to manufacturers and distributers at the same price. After market, at retail, units reach a price point as high as $1250.00 depending on several factors. Canopies are available in nine fabrics, which impact inventory. All fabrics are the same cost. Metal ( Silver )=65% White =30% Black=5% The company is experiences seasonality related to the demand of the product and production increases in the fail and winter to me the iidwest summer demands. Manufacturing in the spring months are soft because Northern Manufacturers have already produced inventory for the spring market. Production increases again in the summer as manufacturers are busy producing for the southern market increase when the population swells in the southern states. Marketing is optimistic that they can grow the market if production can properly manage their costs and meet forecasting. Market forecasts have proven to be 85% accurate. Which is remarkable and operations has been challenged to develop the capability to meet demand which could grow (or shrink) by 15% with little notice. This has caused numerous supply Chain challenges. Assignment: 1. Calculate, a Level production plan for Bliss Creations. a. What are the advantages/disadvantages of the plan b. Could you implement a chase production plan based upon your current capacity? c. What if sales continue to grow what are the implications for production capacity at Bliss