You can now start answering the questions below

Use the format below in answering the Case Study

• I. Statement of the Problem-State the problems facing the manager/key person

• II. Causes of the Problem -Provide a detailed analysis of the problems identified in the Statement of the Problem

• III. Alternative Solutions -Include two to three possible alternative solutions; evaluate the pros and cons of each alternative against the criteria listed.

• IV. Recommendation and Justification -Identify who, what, when, and how in your recommended plan of action; Solution and implementation should address the problems and causes identified in the previous section; The recommended plan should include a contingency plan(s) to back up the "ideal" course of action

Subject Company:

The name of the company in our case study is AFG Corporation a leading manufacturer of Branded Consumer Food. It has a total of 200 brand and maintains around 600 SKU (stock-keeping-unit). The company has a total of 10 plants thus it maintains also the same number of Inbound Warehouses. It also operates 15 Distribution Centers/Outbound Warehouse nationwide. The head of the plant organization is the Production and Operation Manager and under his control includes the Production Personnel, Maintenance and Engineering Department, Quality Control, Production Planning, Supply Chain Group and Plant Human Resources.

Case No.1

AFG Co. basis for Production.

The production department uses the sales forecast as basis for production output and scheduling. The sales forecast is reduced by actual stock-on-hand so as not to produce more than what was forecasted and to prevent surplus products. The product has only three (3) months shelf-life meaning it will expire after 3 months. Thus, the company must not produce more than the forecast. Key Accounts customer are so particular with product shelf-life that you cannot deliver to them more than one month old products. This customer requirements has to be complied by AFG Company because if not the key accounts will reject deliveries and this will result to sales deduction as return.

Performance Appraisal

Part of the performance appraisal of the Production Department is how they were able to produce or meet production quota based on forecast. They must also schedule with maintenance and engineering department regarding preventive maintenance because this requires production stoppage.

Forecasting

The marketing department is the sole party in creating a sales forecast for the company. They usually take into account raw material availability and promotional and marketing activities both has an effect on demand. They also gather a three (3) month average sales as a component in creating a sales forecast.

Warehouse Congestion

On the third (3) week the company experiences warehouse congestion because of too many stocks sitting idly in the warehouse. Sales is not yet picking because it is the lean month as far as the product of AFG is concern. Production personnel were complaining because of non-pull-out of stocks by Finished Goods Warehouse personnel who in return argued that no more enough warehouse space, which by the way during lean month the warehouse is only in half-capacity. Approved deliveries is still few because of the quarantine. Basis for deliveries of Logistics or Inbound is the approved actual order not based on an estimate like a sales forecast.

Production Personnel threatens to stop producing because of congestion in the production floor because of non pullout by Supply Chain specifically logistics group.

This is an operational issue, if you were the Operations Manager how will you solve this impasse between production and Logistics.

Use our template for a guide on case study in making suggestions or solutions to the problem.