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ITM 330 (14)
Chapter 4

ITM330 Chapter 4 Notes.docx

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Information Technology Management
ITM 330
Peter Pille

ITM 330 Chapter 4 Notes Production Overview Fitter Snacker must develop a forecast of customer demand and then develop a production schedule The end result answers two different questions 1 How many of each type of snack bar should we produce and when 2 What quantities of raw materials should we order so we can meet that level of production and when should they be ordered The goal of production planning is to schedule production economically so that the company can ship goods to customers by the promised delivery dates in the most costefficient manner 1 MaketoStock is when items are made for inventory in anticipation of sales orders 2 MaketoOrder is when items are produced to fill specific customer orders 3 AssembletoOrder is when items are produced using a combination of maketostock and maketoorder processes Fitter Snackers Manufacturing Process The snack bar line can produce 200 bars a minute or 3000 pounds of bars per hour Production SequenceRaw materials are taken from the warehouse to one of four mixers Each m
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