OPERATIONS MANAGEMENT ASSIGNMENT Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

OPERATIONS MANAGEMENT ASSIGNMENT Case Solution

Question 1

The solution for the key metrics table is shown in the table below. All calculations could be seen in the excel spreadsheet.

	Mean Demand per week	Standard deviation	Time Ratio	Desired Service level (assumed)	Lead Time Factor
Shampoo	472	140.70	1.414	95%	1.645
Cotton Balls	63	16.00	2.000	95%	1.645
Conditioner	128	40.61	1.414	95%	1.645
Cotton Swabs	62	17.92	2.000	95%	1.645
Body Wash	245	75.47	1.414	95%	1.645
Lotion	107	29.71	1.414	95%	1.645

Item Description	Safety Stock	Order Up To Target	*Business Intuition: Impact on Average Inventory*
Shampoo	327.28	799.52	Demand is expected to go up
Cotton Balls	52.63	115.24	Demand is expected to go down
Conditioner	94.46	222.07	Demand is expected to remain same
Cotton Swabs	58.95	120.49	Demand is expected to go down
Body Wash	175.56	420.25	Demand is expected to go up
Lotion	69.10	176.26	Demand is expected to remain same

Q uestion 2

The ticket agent utilization rates and the average wait in minutes would be as follows:

Critical	60 per hour split across two queues for two counters	60 per hour combined into one queue for two counters	60 per hour split across three queues for three counters	60 per hour combined into one queue for three counters
Performance
Measure
Ticket Agent Utilization	75%	67%	50%	67%
Average Wait in Minutes	4.5	4.00	3.00	4.00
Business Intuition: Better, Worse, Same?		Better	Better	Better

Question 3

The best combination of the product concepts which need to be developed are as follows:

Product Concept	Profitability Index	Average Ratings	Development Costs	Revenues
Artificial Sweetener	$ 15.72	$ 5.25	$ 318,000	$ 1.90

Cane Syrup	$ 6.51	$ 5.75	$ 522,000	$ 2.30
Chili-Lime Rub	$ 0.23	$ 5.75	$ 433,000	$ 2.20
Cocao Powder	$ 8.70	$ 5.75	$ 563,000	$ 1.80
Dijon Mustard	$ 5.15	$ 5.50	$ 621,000	$ 2.40


Lemon Juice	$ 2.47	$ 3.75	$ 365,000	$ 2.20
Pandanus Leaves	$ 12.56	$ 7.00	$ 207,000	$ 2.20
Pickle Juice	$ (0.49)	$ 5.00	$ 616,000	$ 1.20
Powdered Cinnamon	$ 8.56	$ 5.25	$ 561,000	$ 1.50

Soy Sauce	$ 5.20	$ 5.50	$ 731,000	$ 2.10
Sriracha Sauce	$ 3.21	$ 4.25	$ 374,000	$ 1.50

Tasmannia Pepperberry	$ 13.48	$ 6.50	$ 141,000	$ 1.50

Vanilla Extract	$ 1.17	$ 5.75	$ 515,000	$ 2.20

			$ 5,967,000	$ 25.0

This portfolio combination is the most optimal of all and it remains under the $ 6 million available funds cap as well as it achieved 2017 revenue target of $ 25 million. The decision and the choices of the product concepts within this portfolio have been made on the tradeoff between two parameters. The first one is the financial aspect which has been measured through profitability index for each product concept and the second one is the average score or rating for the other factors associated with the different product concepts.

The profitability index, average ratings and the revenues of all the products within the desired portfolio are also depicted in the graph below:

Question 4

The cost driver framework has been applied to Maruti Suzuki Company as follows:

Design

The design of the automotive vehicles of the company has been affected by the standards of the industry. There has been a large number of benchmark procedures and common standards developed within this industry and this has led towards the creation of certain expectations of the customers. Therefore, in this way the design becomes the reflection of the customers and a major cost driver for Suzuki Maruti. The issues dealt here include product line complexity and material specifications..................

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