Guide on Case Study

 I. Statement of the Problem - State the problems facing the manager/key person

 II. Causes of the Problem – Provide a detailed analysis of the problems identified in the Statement of
the Problem

 III. Alternative Solutions - Include two to three possible alternative solution; evaluate the pros and cons
of each alternative against the criteria listed.

 IV. Recommendation and Justification - Identify who, what, when, and how in your recommended
plan of action; Solution and implementation should address the problems and causes identified in the
previous section; The recommended plan should include a contingency plan(s) to back up the “ideal”
course of action

Case No.1

AFG Co. basis for Production.

The production department uses the sales forecast as basis for production output and
scheduling. The sales forecast is reduced by actual stock-on-hand so as not to produce
more than what was forecasted and to prevent surplus products. The product has only
three (3) months shelf-life meaning it will expire after 3 months. Thus, the company
must not produce more than the forecast. Key Accounts customer are so particular with
product shelf-life that you cannot deliver to them more than one month old products.
This customer requirements has to be complied by AFG Company because if not the key
accounts will reject deliveries and this will result to sales deduction as return.

Performance Appraisal

Part of the performance appraisal of the Production Department is how they were able
to produce or meet production quota based on forecast. They must also schedule with
maintenance and engineering department regarding preventive maintenance because
this requires production stoppage.
Forecasting

The marketing department is the sole party in creating a sales forecast for the company.
They usually take into account raw material availability and promotional and marketing
activities both has an effect on demand. They also gather a three (3) month average sales
as a component in creating a sales forecast.

Warehouse Congestion

On the third (3) week the company experiences warehouse congestion because of too
many stocks sitting idly in the warehouse. Sales is not yet picking because it is the lean
month as far as the product of AFG is concern. Production personnel were complaining
because of non-pull-out of stocks by Finished Goods Warehouse personnel who in
return argued that no more enough warehouse space, which by the way during lean
month the warehouse is only in half-capacity. Approved deliveries is still few because of
the quarantine. Basis for deliveries of Logistics or Inbound is the approved actual order
not based on an estimate like a sales forecast.

Production Personnel threatens to stop producing because of congestion in the

production floor because of non pullout by Supply Chain specifically logistics group.

This is an operational issue, if you were the Operations Manager how will you solve this
problem between production and Logistics.

Use our template for a case study in suggesting a solution to the problem.