As reflected in Table 2, storage of inventory can quickly become expensive. As a reference, we can see the six week storage costs for finished Gemini products alone totaled $4000. The total for storing finished products of both models was $7,450. Overtime costs for Ed, during this same six week period would be just over $5,200. At first glance, it seems Ed’s overtime is the better financial option. However, if Space Age only stores subassemblies, the cost would be just over $4,000 during the same six week period, making this a better option than storing complete finished products and a better choice than paying Ed overtime wages. Regardless of the option chosen, Space Age needs to implement an aggregate plan. An aggregate plan, according to Vonderembse & White (2013), is a medium-range operations plan for approximating the allocation of resources to meet projected customer demand. Considering an aggregate plan, Space Age needs to consider how machines Ed is overseeing. According to information provided, the specialized lathe that produces part no. 3079 is only one is a series of machines that Ed oversees. There is a possibility that Ed could supervise one more machine. If so, …show more content…
According to Kubina & Lendel (2012), CRM programs are highly effective when they utilize up-to-date technology, and make it through the first 12 months of the CRM development phase. According to a survey conducted by Adamska & Minarova (2014), representing the machinery industry, the services industry, and the trade industry, 40% stated CRM programs established stronger working relationships between with customers, 32% stated customer management showed enhanced improvements through CRM, and 17% stated that CRM established robust confidence between companies and their customers. These results can be seen in Table 4. When examining alternative for Space Age or any manufacturing organization, it is important to understand the type of production processing. According to Mungani & Visser (2013), “Various production methods are used in industry to manufacture or produce a variety of products needed by industry and consumers. The nature of a product determines which production method is most suitable or cost-effective” (p. 1). When comparing the different types of production processing, we should consider various alternatives. The first alternative is