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Wilkins A Zurn Company Aggregate Production Planning Case Solution

Solution Id Length Case Author Case Publisher
2733 1628 Words (9 Pages) Eric Olsen, Carol Prahinski, Jenni Denniston Ivey Publishing : 906D17
This solution includes: A Word File A Word File and An Excel File An Excel File

The officials of Wilkins Regulator Company are being scrutinized in this case for their stock holdings and other assets. So yet, they haven't established a system that allows them to track inventory and regulate production. As a result, they are becoming more constrained by their growing supply of raw materials, which is the equivalent of a surplus of finished units that is being sent out based on sales projections rather than actual production plans. The Wilkins company is evaluating two alternatives for production planning as they work to manage and reduce their inventory. The "Chase Demand" and "Level Production" strategies are two examples of this kind of approach. This case discusses two potential courses of action and offers a suggestion as to which one would be most beneficial to the Wilkins Company. If your forecasts are incorrect, you run the risk of incurring financial losses because of lost sales opportunities or running out of stock.

Following questions are answered in this case study solution:

  1. What is the risk of implementing aggregate production planning at Wilkins? How do you think managers will respond to it?

  2. Which production strategy/strategies (chase or level) can be considered for the two product groups (fire valves, and PVBs)?

  3. Calculate inventory turns for each of the 2 product groups.

  4. What do you make of the no-lay-off policy?


Case Study Questions Answers

1. What is the risk of implementing aggregate production planning at Wilkins? How do you think managers will respond to it?

The management at Wilkins is well-versed in the development of a selection of high-quality water control products for use in the plumbing, firefighting, public waterworks, and water system industries. Their two primary offerings are fire valves for industrial buildings and pressure vacuum breakers for agricultural water system design. Wilkins Company stands apart because of how well it responds to shifting market needs and trends. The organization endorses a no-cut strategy to maintain a high standard of symbolic assurance. Wilkins' Paso Robles, California, facility's General Manager has been told by headquarters to cut production by 30 percent in the next three months. Recently rising stock prices are seen as beneficial for the corporation for two reasons. The first is a recent increase in the price of raw materials. Second, the firm has a strategy for when it will eventually shut down, and this strategy involves the use of shares to limit the organization's dependence on temporary staff and outside knowledge. Wilkins wanted to know whether the Director-General, through an examination of the production planning system, would be enough to solve his stock issues. Modern competitors will need a sizable financial and asset buffer to launch and sustain their businesses. To get their projects off the ground and keep them afloat, modern players will need substantially more financial and asset cushioning. Large-scale economies of scale favor established players in a sector, whereas new entrants sometimes must wait longer to break even. Scale economies are a substantial barrier to entry since they provide established firms a significant advantage over new entrants and require the latter to invest significant time and resources into building up their own scale. Since aggressive production planning is influenced by several other factors that together form a standard barrier to entry, it is not possible for underutilized players to turn a profit while also advancing the merchants and distribution gurus in the sector.

2. Which production strategy/strategies (chase or level) can be considered for the two product groups (fire valves, and PVBs)?

The federal government should steer startups toward success and ensure their continued operation. Moreover, the regulations around entrepreneurship need to be simplified, so that company owners are encouraged to establish their enterprises in the best possible way. Modularized training programs in several certificate forms should be mandatory for adults to acquire innovative talents. Wilkins A. Zurn Organization is a worldwide organization that Production Aggregate Case Study Swot Analysis is actively working to broaden its worldwide reach and business portfolio. Because of this, international trade would rise, bringing with it more prosperity and new employment opportunities.

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