Lawn King Essay

958 Words4 Pages
1. Introduction Lawn King Inc., which is medium sized producer of lawn mower, is trying to develop an aggregate production plan to minimize the backorders that they face when the demand exceeds the inventory and production. This case report analyzes and discusses the solutions of this aggregate planning. 2. Case Analysis: Lawn King Inc. is a manufacturer of lawn mowers, which are machines that has one or more revolving blades to cut a lawn at an even length. The company produces four types of lawn movers with respect to the dimensions of the machines. (18-inch push mower, 20-inch push mower, 20-inch self-propelled mower, 22-inch deluxe self-propelled mower) All these different types of mowers are made on the same assembly line and this situation results in changeover costs. Lawn King Inc. is a unionized company and it has 100 workers for the manufacturing process. There are 60 workers in the assembly line, who are paid 7.15 dollars/hour and 2.9 dollars as an hour benefit, 25 workers in the machine shop and 10 workers in the maintenance, who are both paid 14 dollars/hour. From the perspective of production planning, Lawn King Inc.’s sale profile has a seasonal characteristic, where weather and economical situations have a great effect on sales. From sales data, it is indicated that yearly total sales of the company is increasing (an increase from 69500 units to 84600 in the years 2003 and 2004 respectively) and the sales revenue has been increased by nearly 25 % through 2003 to 2004. The company’s production strategy can be considered as a one-shift level workforce with overtime used as needed. Company’s aim is to keep the workforce as level as possible (even if there are employee turnovers) and meet the demand with overtime production and inventory. Each year at the month of June, the company prepares an aggregate plan, which includes the level of the

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