Chad’s Creative Concept Essay

Introduction Case Findings Problems Reasons behind the problems Questions and Answers Chads Creative Concepts is a smart set foundedby Chad Thomas that designs and manufactureswood furniture. The company began by producing custom-madefurniture and within a short epoch developed asolid temper for creative designs and high-quality dissemblemanship. As companys reputation grew and salesincreased, the sales force began selling some ofthe pieces to retail furniture outlets, which ledthem into the business of a more standard lineof furniture. Buyers of standard line furniture were very much more pricesensitive and imposed more stringent deliveryrequirements. Custom designed furniture, however, keep todominate sales, accounting for 60% of volume and 75% ofdollar sales. Currently, the company operates a iodin manufacturingfacility where the equipment is mainly general purpose innature for providing flexibility to custom made furniture. two custom and standard furniture compete for processing time on the same equipment by the samecraftspeople. Sales of standard line is increasingsteadily, so it requires more regular programing, but custom made furniture is givenpriority because of its higher sales and profitmargins. Thus, scheduled split up of standard furniturepieces atomic number 18 left sitting around the plant invarious stages of completion. The retentiveness cost of the company is increasingwith dollars tied up in inventory, both of primitivematerials and work in process. The company has to rent expensive publicwarehouse to accommodate the inventoryvolume resulting in come along increase of holdingcost. The increased lead times in both segmentshas resulted in longer promised delivery times.What type of decision must Chad Thomas pee daily for his companys operations to run effectively? everywhere the long run?The situation that Chad is facing is between the manufacturing andturn over. He require to focus on decisions onscheduling, inventory, ca pacity & layout. He look at to make scheduling decision to make sure there is not many raw materials as work in progress status. The standard line manufacturing need to be scheduled properly to avoid this problem. The standard merchandises warehouse is costly. So, he need to reduce inventory by decision making on good supply-chain and implement it. As both the manufacturing line are well in demand and well increasing as well. So, he need to increase capacity to accommodate demand for both product lines. He can also separate out the production lines after increasing capacity