Abc Manufacturing Co. – Business Plan
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ABC Manufacturing Co – Business Plan
1. What strategy would you adopt for the production for each quarter for existing level of sales?
Stepwise Overlapping Strategy as a part of Resource Requirement Planning
Resource planning is the longest-term type of capacity planning. It begins with production plan, which is an outcome of sales & operations planning, and ends with a resource plan that identifies at a high level the resources needed to meet the production priorities. It identifies the number of labour hours required quarterly to meet operations goals. If the goals seem impossible to meet with realistic capacity projections, plans may have to be altered & if the resources are not present to meet demand at the aggregate level, then decisions must be made about modifying capacity, modifying the production plan, or, possibly, managing demand differently.
With reference to the above data, the ideal strategy Stepwise Overlapping Strategy because the profit keeps going up & down and with this strategy it is possible to have the basic capacity required whereas at the same time upgrades can be incorporated. To do so and match the growth or decline in demand, staying a little head (leading), a little behind (lagging), or a little of each (to average out the demand & supply) as you ratchet up capacity in staged to smoothen out the quarterly profits.
2. Should the company go for promotion? Justify.
Yes, the company should go for promotion because of the following reasons: –
Remarkable increase in profits when compared to the present situation statistics.
Increase in profits are a result of increased production level and optimum inventory holding cost.
Miscellaneous