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The ACME Corporation is a manufacturer and seller of electronic testing and switching equipment and sells direct to businesses and on the internet. Their supply
The ACME Corporation is a manufacturer and seller of electronic testing and switching equipment and sells direct to businesses and on the internet. Their supply chain segments are described below, at a high level. Suppliers, located on a global basis. Inbound Distribution Centers (DCs), located in the US and EU, to which suppliers ship product, materials and components. Sub-Assembly Manufacturing, located in the US, which make specific, complex sub-assemblies for the final products. Sub-Assembly Plants are supplied by Inbound Distribution Centers based on need. Final Assembly and Testing plants, located in the US and EU. These are supplied by the SubAssembly Plants and Inbound Distribution Centers. Outbound, Customer-facing Distribution Centers (DCs), where final product is stored, along with peripherals from suppliers, for shipment to customers (retailers, businesses, consumers) Acme has three major product lines that are run as separate businesses, with several supply chain functions as shared services. The product lines are the P60, the N20, and the M40. - P60, network storage product (major markets - computer equipment) - N20 electronic range finder (major markets - automotive, marine) - M40, switching product (major markets - network industry) Acme Manufacturing's head of Demand-Supply Management is not pleased with his product forecast results, which are consistently wrong on the higher side. This has resulted in excess inventory on a consistent basis even though the product is not a high-mix product, and the forecast horizon is for 12 months. He has asked his managers to recommend a course of action that will improve his forecast accuracy. Which is the following would be the best recommendation? Acme Manufacturing Co. is concerned about the low customer service levels in their N20 product line. This is of concern to the sales team and has been causing dissatisfaction with the customers. The Senior Vice-President of Operations has determined that the current manufacturing system of building the product based on actual customer demand may be good for inventory numbers but not too effective when it comes to reacting to changing demand, particularly when one considers the long lead replenishment times for the product, the fact that demand is stable and can be accurately forecasted. She has decided, therefore, to re-orient her manufacturing system to one that runs on long-term forecasts with higher safety stocks, and with forecast time horizons much greater than the replenishment lead time. The system that Acme is adopting can best be described as: A Push System A Just-in-Time System A Pull System A Make to Order System
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