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Provide a 3 pages analysis while answering the following question: Specialty Packaging Corporation. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is req
Provide a 3 pages analysis while answering the following question: Specialty Packaging Corporation. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Running Head: SPECIALITY PACKAGING CORPORATION Specialty Packaging Corporation Case study Specialty Packaging Corporation is a company that processes polystyrene resin into disposable containers that can be used in the food industry to package different kinds of foods. The management has been weighing on the options of storing their goods. The options are private warehousing or public warehousing.
Price established by the subcontractors will certainly influence the decision about the amount of private warehousing space that should be leased. This is because the company only has money to invest into each project depending on the subcontractor's rates as well as the amount of work to be done thus the price will vary. Thus, if it appears that the subcontractor is charging more than expected, the rates of private warehousing space to be leased may have to decrease. However, this is not the only item Julie needs to consider. Julie must also consider how much space the company should lease. If she errs too much in either direction, she can hurt the company by either paying too much, or by not providing enough space. neither error will be helpful to the goals of the company. So, the needs of the company, as well as the pulls of the overall market will need to be considered when making this decision. Julie will need to examine trends of the company's current market and current needs in order to assist her with making this decision (Groover, 2007, p. 787).
She must also consider how much space is really needed. Obtaining too much space will be a waste of money for the company and can thus detrimentally hurt the company. However, getting too little space will hurt the company because it will not give the company what it needs to solve its problems for the next two years. Therefore, Julie must try to get a strong estimate of how much space is really needed over the two year period. This is where potential error in the demand forecast will certainly come into play. She must be careful about this error forecast, as she needs to make sure she does not calculate too strongly one way or the other. Ideally, she may want to leave a bit of room in the calculations to fall either in the greater or lesser margin depending on how the company seems to be doing within this aspect of need. For instance, does the need seem to be increasing or decreasing at this time Determining what direction the need of the company is heading can hopefully help her reduce any margin for error in one direction or the other.
The Aggregate production planning refers to the planning method that involves planning the production output levels of product lines that should be produced by a firm. The plans are coordinated through using different functions of the firms such as product design, production, sales and marketing (Shim, & Siegel, 1999, p .231).
Extruders
Thermoforming Presses
total
N.o. of particulars
14
25
39
Processing capacity of each particular
3000 pounds per hour
2000 pounds per hour
Capacity loss
5%
Effective processing capacity
2850 per hours
Workers
6
25
31
Salary
$15
$15
$30
Overtime
150%(15)
150%(15)
45
Limit of overtime per quarter
60
60
120
Fixed cost of each particular per quarter
80,000
80,000
160,000
Training cost per worker
3000
$3,000
$6,000
Laying off workers
$2,000
2500
$4,500
Training cost for Re-use of idle extruders
$2,000
$2,000
$172,765
The demand forecast for the company for the next three years is.
Forecast
Black plastic forecast
Cum.demand forecast
Normal Prod. days
Prod. rate units/day
2007
I
6650
6650
ii
4576
11226
iii
6293
17519
iv
13777
31296
31296
63
496.7619048
2008
I
7509
7509
ii
5149
12658
iii
7056
19714
iv
15399
35113
35113
63
557.3492063
2009
I
8367
8367
ii
5721
14088
iii
7819
21907
iv
17021
38928
38928
63
617.9047619
Clear plast. forecast
Cum. Dd. forecast
Normal Prod. days
Prod. Hrs /employee
Prod. rate per unit
2007
I
7462
7462
ii
18250
25712
iii
8894
34606
iv
4064
38670
38670
63
504
613.8095238
2008
I
8349
8349
ii
20355
28704
iii
9891
38595
iv
4507
43102
43102
63
504
684.1587302
2009
I
9235
9235
ii
22461
31696
iii
10889
42585
iv
4950
47535
47535
63
504
754.5238095
2052.492
Hours worked by the employees =8
Clear plast. forecast
Cost of production
2007
I
7462
ii
18250
iii
8894
iv
4064
172765
2008
I
8349
ii
20355
iii
9891
iv
4507
172765
2009
I
9235
ii
22461
iii
10889
iv
4950
172765
129307
518295
Black plastic forecast
Cost of production
2007
I
6650
ii
4576
iii
6293
iv
13777
172765
2008
I
7509
ii
5149
iii
7056
iv
15399
$172,765
2009
I
8367
ii
5721
iii
7819
iv
17021
172765
105337
518295
References
Groover, M. P. (2007). Automation, production systems, and computer-integrated
Manufacturing 3rd ed. Upper Saddle River, New Jersey: Prentice Hall.
Shim, J. K. & Siegel, J. G. (1999) .Operations management .Wireless Blvd Hauppauge New
York: Barron's Educational Series.
