Production Planning

1
Production Planning
Reactive Production Capacity
Speculative Production Capacity
Retail Selling
Initial Forecast
Las Vegas Orders
September
November
March
2
Criteria for Ordering Less Risky Styles in
November

• Order styles with the lowest uncertainty
  (standard deviation)
• Order styles with the highest demand (mean)
• Order styles with the lowest price (wholesale)
• Order styles with demand that is more than
  twice the minimum production quantity

3
First Period Production Quantity
Style Mean 2S.D. First period production First period production using heuristic
Seduced 4017 1113 2904 3052
Assault 2525 680 1845 1706
Electra 2150 807 1343 1252
Anita 3296 2094 1202 2026
Daphne 2383 1394 989 1329
Entice 1358 496 862 600
Total 9145 10032
4
Reduce Constraints

• REDUCE MINIMUM LOT-SIZE CONSTRAINTS
• Lean manufacturing
• More efficient cutting equipment (for smaller
  lots)
• Invest in worker cross-training
• INCREASING REACTIVE CAPACITY
• Longer work force hours during peak season
• Use more subcontractor capacity during peak
  season
• Increase total Alpine capacity
• Reduce manufacturing and raw material
  lead-times
• Use common components, e.g., zippers, rings
• Invite most representative retailers for
  January Early-Write