Bliss Creations Case $-$ The Future is so bright I have to wear shades

You have joined a small but established company, Bliss Creations, in Lansing, Michigan making Bimini tops for the boating industry.

These covers have become a $$must have item$$ for every boat. Most new boats have an option to purchase them and there is a small replacement market for those damaged during extreme winds.

It was a remarkable opportunity to join small firm and start to apply the practices you learned in during your time in collage.

Your responsibility is to manage for the portion of the facility that focuses on their contracts with several high$-$end manufacturers prioritizing the quality and fit that exceeds customers standards. Due to patented engineering and high$-$quality designs, only $2\%$ are aftermarket replacements.

Bliss Creations offer several models of premium Bimini Covers and are sold to manufacturers and distributers at the same price. After market, at retail, units reach a price point as high as $$1250\mathrm{.}00$ depending on several factors.

$$

Canopies are available in nine fabrics, which impact inventory. All fabrics are the same cost.

The Aluminum poles and all hardware are offered in three finishes. White, black, and metal $($silver$).$

Market Sales by Color

Metal $($Silver$)=65\%$

White $=30\%$

Black $=5\%$

The company is experiences seasonality related to the demand of the product and production increases in the fall and winter to meet the Midwest summer demands. Manufacturing in the spring months are soft because Northern Manufacturers have already produced inventory for the spring market. Production increases again in the summer as manufacturers are busy producing for the southern market increase when the population swells in the southern states.

Marketing is optimistic that they can grow the market if production can properly manage their costs and meet forecasting.

Market forecasts have proven to be $85\%$ accurate. Which is remarkable and operations has been challenged to develop the capability to meet demand which could grow $($or shrink$)$ by $15\%$ with little notice. This has caused numerous supply Chain challenges.

Demand

Month Forecast

January $30,000$

February $31,500$

March $35,000$

April $37,000$

May $22,000$

June $18,000$

July $17,500$

August $27,000$

September $38,000$

October $40,000$

November $42,000$

December $40,000$

DATA

Manufacturing cost per cover $$74\mathrm{.}50$

Holding Costs per cover$/$per month $$8\mathrm{.}00$

Labor Hours available per employee per month $160$ hours

Labor Hours required per cover $0\mathrm{.}25$ hours

Plant Capacity $35,000/$covers per month

Cost to Hire and Train $$1,250$

Layoff Cost $$500$

Beginning$/$Ending Work Force $50$

Beginning Inventory $10,000$

$$

Assignment:

$1.$ Calculate, a Level production plan for Bliss Creations.

a$.$ What are the advantages$/$disadvantages of the plan

b$.$ Could you implement a chase production plan based upon your current capacity?

c$.$ What if sales continue to grow what are the implications for production capacity at Bliss

Please use Excel spreadshit spreadsheetto show the do the calculations