Clearly, this decision must be made in conjunction with the preparation of an aggregate plan over the three-year period.
Manufacturing Process at SPC Over the past five years, the plastic packaging business has grown steadily. She also had to decide how much warehouse space to lease or build if she chose to use private warehousing. The final solution included a two tower vertical lifting system with a custom, pivoting carriage between the two towers.
Ideally, the two decisions should be made jointly, as each will affect the other. The Actions and Decisions Julie and her group must take two actions. Demand for containers made Specialty packaging corporation case study solution clear plastic comes from grocery stores, bakeries, and restaurants.
Lease rates in any location are determined by the economics associated with building costs in that location and the option value of a lease versus a long-term capital commitment.
Public Warehousing Public warehousing charges customers for both material handling and storage.
As a result, SPC will pay for the space each quarter even if it is not used for storage. The demand forecast between and is shown in Table 2. Presses may be idled for the quarter if they are not to be used.
Workers are limited to 60 hours of overtime per quarter. Without the customers involved in this team, SPC would never have known this information, as the company did not keep track of lost orders. Several viable leasing options exist for the SPC plant, all more favorable than the option of building a new facility.
Each quarter, SPC follows a policy of first using sheets in storage for thermoforming and only then using the newly produced sheets. Thermoforming Presses The plant currently has 25 thermoforming presses.
As the extruders produce rolls of plastic sheet, the amount required at the thermoforming presses is passed forward, with the rest driven via shuttle trailer to one of two public warehouses.
The company is based out of Brownsburg, IN. Each thermoforming press requires one operator and can produce containers at the rate of 2, pounds per hour. The resin is unloaded from bulk rail containers or overland trailers into storage silos.
SPC currently operates for 63 working days each quarter. Capacity on the extruders is not sufficient to cover demand for sheets during the peak seasons. SPC estimates that there is a 5 percent capacity loss due to changeovers. Improved forecasts would allow SPC to improve delivery performance.
Extruders are fairly expensive, and the addition of an extruder requires the hiring of six additional people. Any new personnel hired need to be trained.
Each work day consists of eight hours of regular time and any scheduled overtime.
In the case of private warehousing, Julie must make a decision regarding the square footage to be leased. See Roark Case Study Robotic Machine Tending with Deburring Bastian Solutions implemented a robotic machine tending cell with deburring for a world leader in the supply of axles, driveshafts, and transmissions.
Because SPC sometimes outsourced warehousing to its supply chain partners, one decision Julie had to make was whether to use public or private warehousing. As a result, the plant is forced to build inventory of each type of sheet in anticipation of future demand. Browse hundreds of Advanced Math tutors.
Demand for clear plastic containers peaks in the summer months, whereas demand for black plastic containers peaks in the fall. Materials Management Practices Resin purchased is stored in silos.
Caterers and grocery stores use the black plastic trays as packaging and serving trays. International Paper continues to lead the industry in innovative and proprietary developments. Subcontracting SPC has the option of subcontracting the production of plastic sheets to one of its supply chain partners; sufficient capacity is always available on the open market.
The two manufacturing steps are shown in Figure 1. Transportation is again required to bring the sheets back from the warehouse when they are needed to feed the thermoforming presses. SPC must also take into account velocity and times of materials movement because the staffing level required and storage configurations are dependent on both.
Workers are limited to 60 overtime hours per quarter. Second, the rolls are loaded onto thermoforming presses, which form the sheet into containers and trim the containers from the sheet.
Plot of Quarterly Demand for Clear and Black Plastic Containers Demand Forecast for Next Three Years The collaborative forecasting team used the historical demand data provided in Table 1 supplemented with stockout data to develop a forecast for quarterly demand for both clear and black plastic containers.Manufacturing Case Studies Home / About / Media Library / Case Studies / Manufacturing; Featured Manufacturing Case Study Graphic Packaging International.
Graphic Packaging International is the leading provider of paperboard packaging solutions, including folding cartons and specialty bag packaging. The company. SUPPLY CHAIN MANAGEMENT STRATEGY, PLANNING, AND OPERATION GLOBAL EDITION Sunil Chopra Kellogg School of Management Northwestern University Case Study: Specialty Packaging Corporation, Part B Chapter 9 Sales and Operations Planning: Planning Supply and Demand in a Supply Chain Answer to what forecasting method would you use and find demand for years 6 to 8 in the Specialty Packaging corporation Case Study.
We offer complete packaging solutions to our customers. Specialty Packaging is a leading source of packaging products, equipment and service with extensive capabilities in package design, sourcing, distribution and logistics. Case Sealing /. Textbook Solutions Specialty Packaging Corporation Aggregate Planning Optimization Overall Case Description Julie Williams had a lot on her mind when she left the conference room at Specialty Packaging Corporation (SPC).
CAN SOMEONE PLEASE HELP ME WITH THE CASE STUDY'S DECISION VARIABLES, OBJECTIVE. Specialty Packaging Corporation, Part B Canan Basit & Ceren Yavuz Demand Forecast Information and Constraints Mathematical Modeling & Excel Solution mint-body.coms affecting the actions and decisions?
Relationship between the subcontracter price and amount of private warehousing?Download