Case Sample

Case Study Teaching Notes

For

Introduction to Materials Management, 7e

J. R. Arnold

Stephen N. Chapman

Lloyd M. Clive

TABLE OF CONTENTS

Meridian Water Pumps – Chapter 2 1

Acme Water Pumps – Chapter 3 5

Apix Polybob Company – Chapter 4 6

Wescott Products – Chapter 5 9

Johnston Products – Chapter 6 14

Let’s Party! – Chapter 7 17

Northcutt Bikes: The Forecasting Problem – Chapter 8 20

Randy Smith: Inventory Control Manager – Chapter 9 22

Carl’s Computers – Chapter 10 25

CostMart Warehouse – Chapter 12 29

Metal Specialties, Inc. – Chapter 13 32

Cheryl Franklin, Production Manager – Chapter 14 34

Murphy Manufacturing – Chapter 15 35

Accent Oak Furniture Company – Chapter 16 38

Meridian Water Pumps

Chapter 2 Case Study Teaching Notes

This case is a fairly simple case to work on analytically, yet can provide the basis for a good discussion about the tradeoffs involved with making a good production plan or Sales and Operations plan. While there are clearly differences in the financial results of the possible plans, there are clearly non-financial issues that can and should be discussed in order to give students a better overall perspective involved with this important planning process. Here are sample solutions to the assignment questions:

1. Developing a level production plan is fairly easy. The total demand for the six months is 4650 units. Since the current inventory is 50 and the target inventory for the end of the six month is 25, we reduce the required production for the six months to 4625 (4650-25). Dividing the 4625 by the six months, we would be required to make 771 pumps per month. Dividing the 771 by 25 (the number of pumps one worker can make in one month), we would need 30.8 workers. Rounding that to 31 workers, we...