Grading Notes for Monarch V

• Average =

• Standard deviation =

• Knee Cap Score =

• Knee Cap Team =

Lowest Cost Solution

• My lowest was $1,634,980 • If any team found a lower cost solution

that met all the conditions stated in the case, award +1 bonus point for each $250 or fraction thereof by which their solution beats mine

• Subtract 1 point per $250 or fraction thereof by which any team solution exceeds my total

Recommended Solution Guidelines

• In this part, the students should have recognized that there are potential problems with each of the solutions provided, and proposed a solution that deals with the most glaring problems

Flat Production Rate

• Large ending inventory buildup

• Adding 44 workers in ONE period to a beginning work force size of 110

Chase Overtime

• Adding 30 workers in ONE period to a beginning work force size of 110

• Ending inventories are very small in high selling months of June – November Overtime in July, August, and October may be too high

Chase with Workforce

• Hiring/Layoff Issues - examples of what might be listed include:– Hiring 23 in one period and 54 in another too

much– Laying off 19, 20, 21, and 40 too demoralizing

• Ending inventories too low in every single month

Minimum Cost Solution

• Low ending inventories

• Peak hiring of 19 and 24

• Peak layoffs of 41

• Peak inventories of 4 – 6k

Recommended Solution Guidelines

• Should include some limits on hiring and layoffs (-5 if no hiring limits; -3 if no layoff limits)

• Should include some minimal ending inventories to provide safety stock for uncertain demand (-5 if no minimums)

• Should not allow excess inventory buildup; limit at 8000 which is ~one week production (-5 max; scaleable)

• Should not include excessive overtime for the size of the work force (30% upper limit; since this implies both SAT/SUN for 2 weeks and SAT for all 4 weeks) [-3 if violated]

Bonus Managerial Items (+1 each up to 5 point max)

• Temporary employees to avoid so much hiring/firing• Part time employees• Inventory risks in big buildups• Quality problems could occur due to:

– New employees– Moral because of hiring/layoffs– Fatigue due to overtime

• Is outsourcing an option?• Demand management to reduce fluctuations• Schedule vacations during slow season• Seek complementary products• Others may be acceptable