Friday, October 31, 2008
10/31 4:20PM
so eliot and i met around lunch time today just to try to get some direction, tried to get in touch with the rest of you but werent quite successful. anyways we saw that utilization of machines 1 and 3 were both at a solid 100% so we decided to buy 2 machines, one for each station. demand this time around, except for fluctuations, is supposed to be constant. We figured itd be a good idea to get our lead time down to under 2 days, then switch to the payment schedule with the $1000 payoff but a 2-4 day lead time. with demand being relatively constant we should be able to set a nice reorder point and level of machinery that will keep us at a very profitable level. itll take a few days to figure out what this is, but we figured wed just buy some machines, see if it was enough, then if not buy more til were at the point where lead times are low enough so we can make those calculations and switch the payment plan. let me know if you guys have any different opinions or anything isnt clear. last time eliot and i ran the whole simulation and i know u guys said youd take this one which if you guys still wanna do is fine- the main things we saw last time was that lead times were incredibly important as they effect revenue and the entire grade is on how much cash we have so anytime lead times rise to levels where were not getting paid just find out why and correct it. we have a few new variables this time around which will make it somewhat more complicated though but if anyone posts anything they run into here we should all just check this fairly frequently and well figure it out
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