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MBA Operation Management Problemsolving - Essay Example

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First of all, the concept of a focused factory should be regarded. This concept stands for an enterprise, the manufacturing of which is concentrated on one or several principal customers. This can be exemplified in Focus Packaging Inc case. The factory with 21 workers produces soap boxes for Colgate-Palmolive Company, namely 18 different carton kinds, and nothing else [12]…
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MBA Operation Management Problemsolving
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Download file to see previous pages b) The lower capital intensity of the mentioned type of firms is explained by the stability of working processes when serving a focus customer. Crews do not need retraining because they do the same thing, for the same customer, all of the time. The machinery factor is also to be regarded: for example, the folding and gluing machine at Focus Packaging handles only one size box, so it never has to be reset. The press stops only to install a new roll of the thin cardboard on which it prints [12].
a) The necessity of the firms with a product focus to plan production and inventory levels further into the future is explained by the vitality of the production plan and inventories for successful supply chain management. It is necessary to plan thoroughly the production basing on the demand forecasts and according to this to make up the corresponding inventories. For the firms with focused production it is especially essential, because their performance depends on demands of particular customers, or one major customer [12].
b) All the above mentioned relates also to the necessity to have more formalized supplier relationships. ...
b) All the above mentioned relates also to the necessity to have more formalized supplier relationships. In order for the firm to secure the manufactured product's future sale it is essential to develop clear terms of supplier/customer relationship and validate it formally.
c) The low level of inventory accumulation at the work-in-process stage is explained by the simplified scheme of supply chain affording to avoid the overloading of the warehouses by unsold goods (the firm knows more or less precisely what number of goods it should produce).
Describe four multi-plant location strategies
The four principal location approaches are as follows:
Land Use - optimal agricultural land uses based on transport costs to market; optimal distances of residential and commercial land uses from CBD;
Industrial Location / Production Orientation - transport-cost minimizing location, profit maximization, optimal combination of inputs & optimal level of production at optimal location (allowing for scale economies and substitutability at any one level of production);
Central Places / Market Areas - optimal market areas choosing;
Spatial Competition - optimal response in the face of locational competition [11].
Why Colgate Palmolive, and not Campbell Soup be concerned about NAFTA
The North American Free Trade Agreement, known usually as NAFTA, is a free trade agreement among Canada, the United States, and Mexico [7].
Colgate-Palmolive Company (NYSE: CL) is a multinational corporation in the business of the provision of products such as soaps, detergents, and oral hygiene products such as toothpaste and toothbrushes. Under its "Hill's" brand, it is also a manufacturer of veterinary products [3].
Campbell Soup Company ...Download file to see next pagesRead More
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