Chad’s Creative Concepts Solved Case Study 2022

Running Head: CASE STUDY 0
Case Study
Operations Management
Student Name:
Student University:

CASE STUDY 1
Case Study: Chad’s Creative Concepts
Answer 1: Operating decisions faced by Chad Thomas’
business
Operating decisions are made for managing day-to-day business which is handled by the
operations manager. The operations in the business can be related to pricing, discounts,
promotions, information collection, maintaining account, sales and outreach, logistics
decisions, and employee and customer management (Liu, 2018). Chad Thomas’ business is
facing the situation between manufacturing and turnover and the operating decisions needed
to focus on were scheduling, capacity, inventory, and layout. The fact is that the use of same
set of employees and tools used for manufacturing of custom and standard line of furniture is
a problem (Choi, et al., 2016). The scheduling and layout are the key decisions for assigning
all the resources. The custom line is getting more priority because of higher sales in dollars.
The customers expect least time and low prices for standard furniture and this is counted as a
major issue. The increase in 75% of sales in dollars and volume of 60% to custom line
accounting but the increase in sales of standard line was going well. These decisions were
taken to address work-in-progress status for raw materials to avoid the problem; reduction in
inventory to decide good supply-chain and execution of it as the warehouse is costly; and
need of increasing the size to satisfy demand and separate both the production lines after the
increment. Chad’s Creative Concepts was costing high with the need for growth.
Answer 2: Potential solutions for Thomas to avoid the
problems he faced
The company’s ability to produce goods and services has an impact on long-term and short-
term operations decisions. Operations management is needed in business, to human resources
and accounting, from engineering and research & development. The operations decisions are
needed in technological, monetary and human resources in the company (B, 2015). The
problem in the company is increment in sales standard line which requires regular scheduling
and the priority was given to custom made furniture for its higher sales and profit side-lines.
The reasons for the problems are company’s holding cost is tied up in the inventory of raw
materials and work-in-progress increasing with dollars and promising for longer delivery
times in both the segments. The day-to-day operational decisions are placed by standard
supervisors or employees in the company (Krajewski & Ritzman, 2002, p. 23). Chad Thomas