Case-1: Chad’s Creative Concept

CASE-1: CHAD’S CREATIVE CONCEPT

Question 1: What types of decisions must Chad Thomas make daily for his company’s operations to

               run effectively? Over the long run?

Answer 1: Chad Thomas should consider some of the following Short term decisions for his company’s

            Operation to run effectively:

1. The sales and profit have increased but the production capacity remains the same. So Chad should consider to prioritize production schedule based on demand.
2. He should re-consider the delivery time promise made for the furniture to avoid backorders.
3. He should allocate the manpower and resources effectively for both type of furniture systems such as time of operation of both processes, type of employees to employ and

working hours and should implement overtime hours if necessary.

            Long term decisions Chad need to consider to implement for his company’s operation are:

1. Chad should consider having specialized machines for high volume standard furniture to cope up with lead time and backorders.
2. Total investment to be tied up with Inventory.
3. Type of workforce to be employed: whether standard skills set or with multiple skill set and capabilities to speed up the process with available resources.

Question 2: How did sales and marketing affect operations when they began to sell standard pieces to

               retail outlets?

Answer 2: The sales of standard pieces are increasing steadily but there is a flaw in the operation side as

             they are not able to manufacture standard pieces that is required in the market. There is a

             serious gap between between demand and supply of standard pieces. This is because, the

             pieces are piled up in their manufacturing stage. As sales of custom pieces remained strong, the

             company shifted its priority to custom than standard pieces. Chad should look to resolve