Question

Suppose you receive an order for 150 pieces in period 4 that has to be delivered in period 5 and when you check your MPS you discover that in that period you only have 60 units available to promise and your next batch (300 units) it's scheduled to arrive in Period 6 and preparation time is 3 weeks. What actions can you take to resolve this situation? What are the limitations of the requirements that must be considered? What should be the criteria that must be considered to evaluate and select the best alternative?

PLEASE BE SUPER SPECIFIC IN YOUR ANSWER. FOR SOME CONTEXT THIS IS A QUESTION FOR A PRODUCTION AND INVENTORY DESIGN AND ANALYSIS CLASS.

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This is an analytical problem. Whats expected its to provide alternatives to the dilema presented in the production system and analyze the possible consequences of them.

Answer 1

1.

Let I am owner of an organization and receive an order of 150 pieces (units) in period 4 that to be deliver in period 5 but unfortunately in my MPS only 60 pieces are there but my next batch of 300 unit is coming soon (in three weeks) for overcoming this situation first of all I would insist to my customer that at present in period 5. I can give them only 60 pieces not 150 pieces because I am having 60 pieces only at present in my MPS and promised them that I will provide you remaining pieces i.e. 150-60 = 90 pieces in next period 6 that will come within three weeks (It is the processing time of pieces).

If they understand then ok otherwise I will request to them that at present you have these 60 pieces and as soon as possible I assure you that I will provide you remaining 90 pieces anyhow and on the other hand I will give order to my MPS batch that please send 90 pieces from my third batch first to me because I have to send 90 more pieces to the customer in this way I can provide full order to my customer and can have my customer relationship and I deliver them 150 pieces without any too much late to them

2.

Following limitation of requirements must be considered

• Customer need all the 150 units that’s why he sends order of 150 units in period 4
• It is the duty of the businessmen to whom order is made to provide all the unit of pieces on time
• Every time before conformation the order the person need to check their MPS that proper no of pieces are there or not so that customer can have proper faith in them always
• If you accept any order try to complete it in giver period of time

3.

Criterion for the selection of alternatives is that any businessmen don’t want to lose their customer. For any businessmen customer is like a god for them so he have to choose a best alternative to complete the order for maintaining a customer relationship and value with him as well as in future also they can have faith that only one person is there who can fulfil our order anyhow. They have to think about their market report that we can’t denied the order received from the customer and we have to provide full order to the customer without any late.