You are a Business Management Consultant recently hired by MK & Company You have been approached by

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You are a Business Management Consultant recently hired by MK & Company

You have been approached by two potential Clients; each of them has a business problem and asked you to develop a Business Consultation Report including the best solution, as follows: Client (1): This Client manages AZ Precast Company, a precast concrete factory that produces and sells all kinds of precast concrete structural elements such as Hollow-Core Slabs and Wall Panels used in constructing multistorey buildings such as college student residence. Figure 1 shows the precast HollowCore slab and Figure 2 shows the precast Wall Panel:

Client (1) has explained to you his problem and asked you to develop the best solution to help him in planning his Production Process, forecasting the demand for the remaining half of the year, and accordingly arranging for the material requirements, purchase, and delivery tracking. The demand on Precast Walls and Hollow-Core Slab products varied during the first planning periods. Client (1) has given you the list of number of sections sold during the first planning period (January to May), as shown in the following table:

Planned Period January February March April May Number of Hollow-Core Sold 1760 1920 2080 1920 1920 Number of Wall Panels Sol

Client (1) told you that the current level of inventory and his capacity of holding inventory in his warehouse by the end of the new planning period (June to October) are as per the following table:

Product Inventory remeining from the last planning period 1600 2400 Cients capacity of warehousing by the end of this planni

REQUIREMENTS – Client (1) Develop a Business Consultation Report to Client (1). Include in your report the following information and details:

1. Analyze the information given to you by Client (1) and recommend the best Production Strategy that best fits the fulfillment of demand fluctuation for both products (Hollow-Core Slabs and Wall Panels). Explain in-detail how your recommended Production Strategy should achieve the best results of (minimum stockpiling during the low-demand period and minimum shortage during the high-demand period). Justify and support your recommended Production Strategy by using the theories learned in this course and by giving practical examples from well-established companies that have been using what you recommend.

2. Provide a Forecast for the new planning periods, use the same planning periods of the first half of the year (January to May) and recommend to the Client how many Hollow-Core Slabs and Wall Panels to produce for each month in the remaining half of the year. NOTE: The factory will be closed in November and December.

3. Show the Ending Inventory of each month and how many Hollow-Core Slabs and Wall Panels (in TOTAL) are expected to remain in the warehouse by the end of the planning period (end of October). Hint: you should NOT exceed the Client’s warehousing capacity by the end of the first half of the year.

4. If the cost of holding inventory in the warehouse is $ 5 per Hollow-Core Slab per Period and $ 3.75 per Wall Panel per period, by assuming that your recommended Production Strategy is the best, what is the planned cost saving of the ending inventory of (each planning period of the next half of the year), and what is the TOTAL planned cost saving of the ending inventory by the (end of the year)?