When it comes to fulfilling customer orders within 3 days of order receipts. Rate of the orders is less than the lead time of manufacturing the incoming orders).Īs per the current situation of the manufacturing facility, SM paints is performing inconsistently This will reduce the holding cost of the finished goods. By doing this, it can be ensured that the lead time is kept under control ( even when theįacility is overloaded while still using the current system) and thus, the orders could be delivered to theĭistribution centers as quickly as possible, eliminating the need to keep large stocks of inventories in theĭistribution centers. These three objectives can be achieved if the production system is fine-tuned to remove anyīottlenecks, present currently, and then make maximum possible utilization of various resourcesĪvailable. Make room for extra orders, to generate more revenue ( after getting current system under
Complete 98% of incoming orders within three days of order receipt. Reduce holding costs (by reducing time spent by completed orders in the distribution centers) The company feels the need to improve its production process to attain three main After packaging, these orders are sent to the various distributionĬenters from where they are further transported to the company’s retail shops. The whole facility is designed to perform manufacturing and Packaging types (quarts, gallons, buckets).
Also, these orders are packed together using appropriate combinations of different SM paints is a paint manufacturing company which produces a line of paints, which comprises differentīatch sizes. Statistical Output Analysis & Recommendations.
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