2. The Trapper Lawn Equipment Company manufactures a line of riding mowers. The company currently uses a chase strategy in its SOP.

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, and March) that will hit the five days of inventory supply target if you accept the sales Plan.

b. What are the implications of your 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) History Oct Nov Dec Plan Jan Feb Mar Apr May Jun Sales Plan (in millions $) (in units) Actual (in units). 12.50 10.00 16.25 5,000 4,000 6,500 4,384 3,626 6,065 5.00 5.00 7.50 10.00 12.50 17.50 2,000 2,000 3,000 4,000 5,000 7,000 Diff. month -616 -374 -435 Diff. cumulative -990 -1,425 Operations Plan (in units) 5,000 4,000 6,500 2,000 2,000 3,000 4,000 5,000 7,000 (in employees) 72 70 114 33 32 43 67 76 106 Number working days/mo. 23 19 19 20 20 21 23 20 22 22 Actual (in units) 5,649 4,091 7,279 Diff. month 649 91 779 Diff. cumulative 740 1,519 Inventory Plan (in units) 1,270 (in 1,000 $) Actual (in units) 1,270 1,270 2,223 2,223 2,223 2,265 2,730 3,944 3,944 3,944 3,944 3,944 3,944 3,944 6,902 6,902 6,902 6,902 6,902 6,902 Days of supply 12 9 39 41 30 20 20 77 17 12