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CASE STUDY 4 CASE STUDY IN OPERATIONS MANAGEMENT "Readkine" Iyre Manufacturing company have their manufacturing...

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CASE STUDY 4 CASE STUDY IN OPERATIONS MANAGEMENT "Readkine" Iyre Manufacturing company have their manufacturing facilities in Mumbai. Majority of their sales are concentrated in North and East zones, however, they have seen an increasing demand from West zone and there is a good market potential in West zone. The Sales forecast is given below: Q1-2011 onwards Q1-2010 2-2010 3-2010 4-2010 No. of tyres 40000 6000080000 100000 120000 g manufacturing facilities at Mumbai are already running to full capacity and so they need to Their existin set up a new tyre manufacturing plant in West zone, to meet the above sales projections. Annexure "A provides the informa necessary machines, the overall capacity utilization of the plant is expected to b wastage or rejection rate of around 5%. tion about the product and the manufacturing processes. After installation of the e 90%, with a material The average labour rate is Rs.30 per hour and the average efficiency of labours 90%. The overheads for managing the plant and workforce are 25% of labour cost A transport truck carries around 200 tyces per trip and the average cost per trip is Rs. 1200

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