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2 November, 06:25

Chobani's equipment runs for 10 hours and must be idle for 4 hours while being cleaned. Its plants operate day and night all week long. What are the implications for the company's purchasing, inventory control, scheduling and quality control functions. Your answer should be detailed and well thought out.

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  1. 2 November, 07:47
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    For the company's purchasing; leasing the machine for the active period i. e 10 hours a day would be cheaper because the cost of cleaning and maintenance would be eliminated

    For the company's inventory control; if the company leases the equipment that would reduce it's setup cost keeping its inventory low

    For the company's scheduling; scheduling deals with completing a job within a given time and it is very essential to utilize the productive time

    For the company's quality control functions; the company has to ensure that in as much as it has to meet its production schedule the quality of the products should be paramount

    Explanation:

    Running time = 10 hours. Idle time = 4 hours

    The implications of the machine:

    For the company's purchasing; since the equipment has to be used everyday and after the 10 hours it will run, it has to be ideal for 4 hours for it to be cleaned and maintained every day. therefore the purchasing department of the company will have to sort for an alternative equipment which would be less expensive and would have less idle time during cleaning and maintenance. but if this alternative is more expensive, then leasing the machine for the active period i. e 10 hours a day would be cheaper because the cost of cleaning and maintenance would be eliminated

    For the company's inventory control : inventory for every company is the stock of the company that remains unsold and every company should aim to keep this as low as possible and one way is by reducing setup costs and safety cost. if the company leases the equipment that would reduce it's setup cost keeping its inventory low

    For the company's scheduling : scheduling deals with completing a job within a given time and it is very essential to utilize the productive time i. e 10 hours of the equipment in order to avoid unwanted direct and indirect cost.

    For the company's quality control functions: As the equipment runs for 10 hours day and night in other to meet up with the production and scheduling the quality of the products might be adversely affected hence the company has to ensure that in as much as it has to meet its production schedule the quality of the products should be paramount
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