A closer look at the situation will reveal that the two persons concerned had asked for the expert consultation. Ron and Debora Hill had requested my consultation. Ron and Debora are the founders and owners of Arva furniture in the region of Arva. A closer look at the case will reveal that the chief problem faced by the two owners is the issue of meeting the demand of 500 refurbished chairs per year. In addition to this, another pressing issue is the need and the manner in which the refurbished items will be produced. Ron and Debora can explore the three options of buying and innovating the old machines or innovating the existing machine or buying an advanced computerized machine. These issues need attention and need to be addressed because it is quite important for the persons concerned to opt a viable and productive option to meet the demands of the client. In addition to this, these issues need to be addressed to delete and fix the operational as well as financial issues. Properly addressing these issues can also assist ni minimizing the cost while generating productive items.
In order to arrive at proper and effective solutions, the issues were examined in a comprehensive manner. Operational as well as financial data of Arva furniture were analyzed in a proper manner. Studies reveal that the effective and proper accumulation of data in relation to the financial details can help in enlisting the future endeavors (Crawford et al.,2014). In this situation, the financial data related to yearly expenditure and turnover had helped in mapping the measure that needs to be adopted. Further, the value of the assets were also measured to gauge the total values. Studies are emblematic of the fact that measuring and analyzing the annual turnover and expenditures can assist in comprehending the various important nuances (García-Fernández et al., 2017). In addition to this, the relevant operational data were gathered and analyzed. The collection and analysis of operational data help in understanding the various ideas related to suppliers as well as the availability of resources (Sonka, 2014). In this case, the operational data had helped in gathering information about the present state of the resources and the changes that need to be adopted in the process of producing refurbished chairs. Studies project that the proper accumulation of operational data helps business organizations in gauging the prevalent factors and the changes needed to be incorporated.
The above-identified issues were classified into four sections for the purpose of examination. The data were analyzed through the method of statistical data analysis. Statistical Data analysis helps in the analysis of data following a mathematical process. The Statistical data analysis includes the idea of acquiring the mean, deviation and other mathematical ideologies to decode the available data (Motulsky, 2015).
- After the proper analysis of the data, we had arrived at certain ideas. Of the three options and equipment, I would suggest to incorporate the idea of adding some new heads to the existing carving machine. This would assist in the accumulation and collation of the existing machinery with the new and innovative ideas. In addition to this, this will also help in reaping the benefits of new ideas along with the existing machines.
- In order to maintain the optimal cost, Arva furniture should order at least 200 leg sets. This can ensure the generation of optimal profit.
- It can be said that 400 orders per year will be optimal for Arva furniture to increase as well as optimize the profit.
- It can be said that the average inventory that is needed to minimize the cost points towards the assets. The average inventory that is needed is $ 2000.
- It is recommended that Arva furniture needs to inculcate innovative strategies to refurbish the chairs.
- It is recommended that Arva furniture should incorporate ideas to improve the existing assets.
After analyzing the above-discussed idea, it can be concluded that in order to meet the increased demand of the client, it is necessary for Arva furniture to inculcate the new heads at the existing machinery. In conclusion, it can also be mentioned that the Arva furniture needs to inculcate the necessary measures to meet the demand of the client.
Crawford, K., Gray, M. L., & Miltner, K. (2014). Big Data| critiquing Big Data: Politics, ethics, epistemology| special section introduction. International Journal of Communication, 8, 10.
García-Fernández, J., Elasri-Eijaberi, A., Pérez-Tur, F., Triadó-Ivern, X. M., Herrera-Torres, L., & Aparicio-Chueca, P. (2017). Social networks in fitness centres: the impact of fan engagement on annual turnover. Journal of Physical Education and Sport, 17(3), 1068-1077.
Motulsky, H. J. (2015). Common misconceptions about data analysis and statistics. British journal of pharmacology, 172(8), 2126-2132.
Sonka, S. (2014). Big data and the ag sector: More than lots of numbers. International Food and Agribusiness Management Review, 17(1030-2016-82967), 1.