Logistics Operation Strategy Case Study Assignment

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BELL Computers Bhd’s is an IT component manufacturer, they aims to expand their business to the  international market. Because the business is still in its infancy, the operations manager is torn between hiring new employees and laying off existing ones for the unforeseeable future. They’ve noticed that the overall planning is a sure way to be certain about the decision. As a result, their company will be able to plan for the number of employees, the amount of inventory it has, and the rate at which it produces following their business objectives. As a result, the company’s operations manager gathered the following data. An additional buyer’s forecasted monthly demand for the IT components is 3000 units.

Month	Unit
January	9000
February	9000
March	10000
April	10000
May	13000
June	11000

 

Current Workforce	25 direct workers
Standard Output	20 units per worker
Regular Working hours	8 hours/day
Regular labour cost	RM6/hour
Overtime rate	RM8/hour
Inventory carrying cost	RM1.5/unit/month
Subcontract cost	RM10/unit
Working days	25 days/ month

Question 1

Using this case as an example, define the term “Work Measurement” in the context of their business operation. Describe the significance of work measurement in relation to the business discussed in the preceding case. Support your argument with an example from the same business context that you are familiar with. 

Question 2

When demand does not match capacity, BELL Computers Bhd try to balance the two through pricing, promotion, order management, and new demand creation. As a new brand operation manager in the firm, you must emphasize the rationale for preparing an aggregate production plant for the company using the constant workforce strategy. Support each underlying reasons by using relevant example.