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Parker Earth Moving

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Parker Earth Moving Company Operational Performance
ISCOM305
March 5, 2012

Parker Earth Moving Company Operational Performance

What problems exist in the current operational strategy
The current problems with the operational strategy is the facility that is being utilized to produce the new product can only handle the forecasted unit that was predicated by the marketing and sales department. The current facility is already laid out to handle the 10,000 units and all material has been ordered for the entire quarter to meet the demand. In order to ramp up to the number of units based off the analysis that was conducted an offsite facility will need to be obtained to handle the quantity.
Obtaining a new facility to handle the additional inventory Parker Earth Moving company will be challenged to increase the price of the product and increasing based off their carrying cost which due to the additional inventory that will be carried. The is a new product and if the demand is not there from the external customer excess inventory may occur increasing the cost of capital.
Operations Business Continuity Planning The Parker Earth Moving Company operations and production inventory will be maintained and managed through the inventory reorder points and quantities per order processes via the operational controls and subcontracting objectives mentioned in this executive summary. This operations and inventory plan accounts for the best way to manage the production needs for Parker but does not account for emergency, disaster or supply interruptions that are unforeseen. The business continuity plan (BCP) for Parker Earth Moving Company will be put in place to account for an interruption in raw materials or component parts needed to maintain the 30,000 unit per month production schedule required to launch the Ultramover into the market. BCP will account for any

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