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The purpose of this case study is to apply a number of the key concepts covered in the course textbookto a no±onal business case.

The purpose of this case study is to apply a number of the key concepts covered in the course textbookto a no±onal business case. Consider yourself the supply chain manager (SCM) for this company. In thisposi±on, you work closely with the plant produc±on manager to support the produc±on schedule. Theproduc±on schedule is updated every quarter based on the latest sales es±mates from the marke±ngdepartment. You also work with the purchasing department regularly for reorder of raw materials fromvarious suppliers. Another one of your key responsibili±es is that you manage the warehouse, so you areresponsible for the eFcient use of the limited warehouse space that you do have. You must maintainsuFcient inventory to ensure that there are no work stoppages because of stock outages. As the SCM,you are also responsible for outbound transporta±on and ²nding economical means to ship ²nishedgoods in a ±mely manner. In view of your wide range of responsibili±es as the SCM, you play a vital rolein the pro²tability of your company.Company background: Acme Bicycle Company is a medium-size bicycle manufacturer located in Wichita,KS. It specializes in “theme” bicycles for children and teenagers. The themes include princesses fromfairytales and animals, which are popular with girls, and aliens, robots, and sports heroes, which arepopular with boys. As such, Acme Co. rou±nely produces its bicycles in small batch sizes to follow thelatest popular trends with its children and teenager customer base. This also ensures that the companywill not be le³ with unsold bicycles that are out of style with its customer base. The following is asummary of Acme Co.:Product lines: At any one ±me, Acme Co. is likely to be in the process of producing three di´erent typesof bicycles based on market demand projec±ons and current ²nished goods inventory levels.Addi±onally, the pro²t levels of each of the bicycles vary, and at ±mes, the produc±on of higher-pro²tbicycles takes precedence over lower-pro²t bicycles based on produc±on and material capaci±es andproduc±on constraints of the labor force and produc±on machinery. Speci²c informa±on on produc±onand transporta±on costs and the sales price of the bicycle product line are given in the case study datasheet. µor purposes of this case, unit pro²t for each bicycle is calculated by subtrac±ng the produc±onand transporta±on costs from the sales price.Produc±on line: To construct a bicycle, the Acme Co. produc±on line has consolidated and streamlinedits produc±on process so that bicycle building can be accomplished in three segments on the produc±online. These segments are the Metal Shop for ini±al molding and shaping of the metal parts, theComponents shop for the building of component sets, which include the seats, ±res, and accessories foreach unique bicycle, and the µinal Assembly shop for the assembly of all the components together, the²nal inspec±on, and tes±ng. Due to the nature of the work in the three produc±on segments, eachsegment has a di´erent capacity level of how many bicycles it can produce in a normal workday. Acme’snormal produc±on is 40 produc±on hours a week to cover produc±on requirements for most of the year.Produc±on occurs Monday through µriday, and the work hours of the produc±on crew are designed suchthat some workers come in early to start up the assembly line and some workers come in later to 

 
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