A variety of other parts and supplies for example oil

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A variety of other parts and supplies (for example, oil filters and oil) must be kept available due to the regularity of use, and it is difficult to meet the high expectations of customers if these items are not available. This has become a particularly high priority since the service chains moved into town, as the speed of their services such as oil changes is already far superior to that of Al’s. Al is dedicated to using a high-quality brand of parts and supplies, most of which are available from a single supplier. Currently, a continuous review policy is used for all car parts and supplies, but Al believes this system may require too much time to maintain for all inventory items. A sample of some of the items offered, the volumes used in services and sold at retail, and the associated costs are shown in Table 3. Al has determined that to call the supplier, pay for transportation, and put a shipment away costs approximately $50. The stockroom is relatively small and does not require special equipment or personnel, and there is virtually no theft of product, so the annual holding costs are approximately 25% of unit cost. Delivery of orders takes about one week from the local supplier. As part of your requirements for your Introduction to Operations Management course at the area college, you and your team have been assigned to conduct a thorough analysis of the shop’s operations, and provide recommendations to Al. The following questions are to help provide structure to your analysis and case memorandum. 2
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Questions: 1) Analyze and discuss the competitive priorities for Al’s Auto Tire and Lube. 2) Analyze and discuss the process choice and service package considerations for Al’s Auto Tire and Lube. 3) Analyze and discuss the capacity requirements of Al’s Auto Tire and Lube. (HINT: all mechanics are working on vehicles the full number of hours shown scheduled in Table 1).
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