Mgt 303 Essay
Peanutty Food and Co.
1. What actions can Peanutty’s managers take to ensure the supply of raw materials for its operations, while reducing the risk of stockouts or high production costs?
They can operate on a just in time method, when they get a constant understanding of demand. This way they can cut production costs, by only making what they need. They can also predict when they need more inventory to make sure that they never run out of stock for their customers to purchase.
2.What activities could be developed by Peanutty to reduce or manage the power od its suppliers and customers to minimize risks and maximize profitability?
Peanutty needs to venture out and expand themselves on the market. Coming …show more content…
1. Map out the order entry and production planning processes. How long do these processes take? How much of this time is value added? What is the percent value added time? What accounts for the remainder of the time.
Order entry process: must be sent 15 days in advance, but takes 24 hours to process at most
Production planning process: 4 days
For the order entry process, about 50% of this time is value added. For the production planning process, about 20% of this time is value added.
The remainder of the time is used for processing and getting everything in order to be sent out.
2. The current processes are definitely not ideal in regards to Ellison being able to meet CMX’s lead time requirements. It is possible but unlikely to be successful each and every time there is an order. CMX has already made Zephtrex aware of the risk of not being prepared for changes in the marketplace. Also, Ed is not always available to receive the sales order in a timely manner, which could in fact push the order back an entire week, depending on which day he actually becomes aware of the order, during the order entry process. Because Rosemary schedules all orders for production to start on