A. Manufacturing, planning and control (MPC) environment is defined by customer

Question

A. Manufacturing, planning and control (MPC) environment is defined by customer order decoupling point. Define each environment and give an example of each. B. In forecasting, MacDonald’s Wing® discovered that when it opened its store to the public, it was able to sell 5,000 parachutes in the first year. Given the equation; y=a+bx. Where ‘y’ represents the number of sales and ‘a’ is the number they started with (200), what is the slope of this equation after 2 years? (2 points) (slope is b) This paper must be a minimum of 2 pages (not including cover and references) and include 3-5 references.

Explanation / Answer

Demand management and customer needs defince MPC environment. Demand management is a process used to predict, plan for and manage the demand for products & services. Demand management coordinates demand quantities and timings with the planning and control activities of the organization.

MPC environment is defined by customer order decoupling point. The point where demand changes from independent to dependent. The sources of demand determines whether it is independent or dependent. Independent demand refers to the customer demand that is not directly influenced by the tasks of the company, for example, customer orders. Dependent demand refers to the demand driven by the activities of the company, for example, warehouse demand.

Make to stock environment: It focuses on the maintenance of finished goods inventories(stocks). The commodities are produced and stocked in the firm before there is arrival of an order for these commodities.

Assemble to order environment: Here, the task is to define customer's orders in terms of components and options.

Make to order environment: The task is to gather information about customer needs and coordinating with manufacturing.

Engineer to order environment: Companies work with customer to design the product, then the products are produced.

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