Yankee Fork and Hoe Company

758 Words4 Pages
HW 1: Chad’s Creative Concepts 1. What types of decisions must Chad Thomas make daily for his company’s operations to run effectively? Over the long run? One of the decisions Thomas has to make daily is which types of furniture to prioritize. Thomas has the same amount of space and machines as before but now he has an additional standardized line that he sells to retail outlets. Now sales of the standardized line are beginning to rise but not only does he have the same amount of equipment, he also cannot speed up the production time of the custom made furniture. Another decision that Thomas is faced with has to do with how quickly he can deliver pieces. The buyers of the standardized pieces have more stringent deliver requirements, yet Thomas is still prioritized the custom made furniture. He has to decide daily what kind of realistic delivery dates he can set without upsetting the customer. Along these lines is the daily decision of when to prioritize which line – whether through production, marketing, equipment, and labor. Over the long run, Thomas has to think on an accounting level since he has furniture in all stages of ready. Some of the pieces are only raw materials, others are work in process, and others still are completed and in storage. Also, as his business continues to grow, Thomas will have to think about whether to hire more people and at the same time what kind of new equipment should he buy. Can he hire new people without first getting the equipment? Would it speed up the current process to have more workers? Also if he plans on continuing the standardized line, then he will need to think about potentially having a standardized process incorporated so the pieces can be made quickly and cheaply. Finally, since the current plant is full, Thomas will either have to consider having a new layout or investing in another plant to accommodate
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