M&L Manufacturing

M&L manufacturing

Submitted to: Dr Abdel Aziz Mohamed Prepared by: Fady Fikry Israa Mohamed Mohamed el Kady Tony Wafik 

 Agenda   

Introduction & case analysis Tools used to face the challenges Recommendations

M&L manufacturing 1.

2.

3.

M&L manufacturing makes various components for printers and copiers. The company also distribute these and similar items to office supply stores and computer stores as replacement parts. The company makes about 20 different items.

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The company does not use the forecasts for production planning, instead the operations manager decides which items to produce and the batch size based partly on orders and the amount in inventory (The products that have the fewest amount in inventory get the highest priority.)  As a result the company being overstocked on some items and out of stock in others. The price of raw materials have been increased.

Tools used to face the challenge 

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Because of competitive pressure and falling profits the manager has decided to undertake a number of actions depending on formal forecasting procedure in order to improve production planning and inventory management. The manager focused on two products.

Benefits of using a formal forecast 1.

2.

3.

To overcome the periodic out of stock  situation. One of these products will become increasingly important to future growth plans. Enhance the company profits

The next four weeks forecast 

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 According to product 1 we can see that there is a gradual increase of 3 pieces every week, despite that there is an extraordinary order in one of the 14 weeks. For product 2 we can t find a trend, so it would be found easily by taking the average of the 14 weeks. ’

The next four weeks forecast Week 

Product 1

Product 2

1

50

40

2

54

38

3

57

41

4

60

46

5

64

42

6

67

41

7

90*

41

8

76

47

9

79

42

10

82

43

11

85

42

12

87

49

13

92

43

14

96

44