Your Mission
Your team has been hired as consultants to analyze the Fred's Auto Servicebusiness and to provide Fred Cooper with recommendations to consider.
Your answers to the following case questions should be clearly numbered and are NOT intended to be presented as a narrative;answer each question and sub-part, cross-referencing, where applicable, your specific Exhibits that support ananswer:
1. What elements of the service package take place above the "line of visibility"?
2. If Galen's torque wrench measured a mean value of 61.4 foot-pounds in his re-assembly of the Camry engine, should Fred allow him to perform this work? Explain your answer.
3. Capacity requirements (Please refer to your applicable exhibit; no discussion needed)
a. What is the utilization by day? By mechanic? (Two, separate Tables)
HINT: The systemwide or overall Utilization for the Week MUST be identical regardless of measure (i.e. by Day or by Mechanic).
b. What is the average capacity cushion? Is this too high, too low?
HINT: Following the logic of part a., there can be only ONE Cushion Measure for the entire system each week.
4. Inventory policy (Please refer to your applicable exhibit; no discussion needed)
a. Create a spreadsheet for ALL parts listed in Table 2. The format must include, in this sequence: EOQ, Safety Stock levels, Reorder points, and- separately- the annual Inventory costs (Ordering and Holding inventory, including Safety Stock)using the continuous review system.
Separate from the Summary Table please provide a calculation breakdown for Brake Padsonly for each measure requested.
(NOTE: The evaluation of your work will assume EACH calculation by item followed the same steps.)
5. Identify and describe TWO recommendations you would make to Fred Cooper to improve Operations and/or to lower costs.
Attachment:- Case-FredsAutoService.rar