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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 me 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$.$ What if sales continue to grow what are the implications for

production capacity at Bliss?

S&OP Spreadsheet

Sales & Operations Planning Spreadsheet for Kumquats Unlimited

$($with solver optimization$)$