2. The Trapper Lawn Equipment Company manufactures a line of riding mowers. The company currently uses a chase strategy in its sales and operations planning. Management attempts to maintain a line fill rate of at least 99 percent and hold inventory of five days. Employees can produce three units a day on average. The historical records for the last three months and the plan for the next six months are given as follows:

a. Given this information, suggest a revised production plan for the next three months (January, February, March) that will hit the five days of inventory supply target if you accept the sales forecast.

b. What are the implications of this plan, considering the qualitative factors?

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Trapper Lawn Equipment Company Sales and Operations Planning Spreadsheet: Riding Mowers Product Group (Make-to-Stock) Sales Forecast (in million $) (in units) Actual (in units) Diff. month Diff. cumulative History Plan Oct Nov Dec Jan Feb Mar Apr May Jun 12.50 10.00 16.25 5,000 4,000 6,500 4,384 3,626 6,065 -616 -374 -435 -990 -1,425 5.00 5.00 7.50 10.00 12.50 17.50 2,000 2,000 3,000 4,000 5,000 7,000 Operations Plan (in units) (in employees) Number working days/mo. Actual (in units) 5,000 4,000 6,500 72 70 114 23 19 19 5,649 4,091 2,000 2,000 3,000 4,000 5,000 7,000 33 32 43 6776 106 20 21 23 20 22 22 7,279 Diff. month 649 91 779 Diff. cumulative 740 1,519 Inventory Plan (in units) (in 1,000 $) Actual (in units) Days of supply 12 1,270 1,270 1,270 2,223 2,223 2,223 2,265 2,730 3,944 12 3,944 3,944 3,944 3,944 3,944 3,944 6,902 6,902 6,902 6,902 6,902 6,902 12 39 41 30 20 17 12