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In this paper, you are required to come up with a master production schedule for the bread maker. Your report must include projected ending inventory and available to promise numbers look like and if Realco has overpromised also, comment on Jack’s approach to order promising and its pros and cons. Finally, cover all the questions mentioned below. Support your answers with relevant recommendations and present an appropriate structured report.
Develop a master production schedule for the breadmaker. What do the projected ending inventory and available-to-promise numbers look like? Has Realco “overpromised”? In your view, should Realco update either the forecast or the production numbers? Comment on Jack’s approach to order promising. What are the advantages? The disadvantages? How would formal master scheduling improve this process? What organizational changes would be required? Following up on Question 2, which do you think is worse, refusing a customer’s order upfront because you don’t have the units available or accepting the order and then failing to deliver? What are the implications for master scheduling? Suppose Realco produces 20,000 breadmakers every week, rather than 40,000 every other week. According to the master schedule record, what impact would this have on average inventory levels?