Assignment 3 Example | Topics and Well Written Essays - 750 words - 3

3 - Assignment Example Workers at the firm lack adequate knowledge to operate existing system. The available system takes time to update hence the limited labor supply would tend to ignore the protocol and use outdated data in analyzing the market. The other constraint relates to costs. This is caused by the firm’s inability to schedule and utilize their line of production. The external constraint relates to demand in that the firm’s complex system makes it impossible to anticipate demand and hence distracting production (Upton & Singh, 2007). The firm encountered major challenges due to these constraints. Sunsweet Growers was unable to meet the market demand. The available labor supply become rigid hence was unable to change with changing demand. There existed increased cost in inventory and production due to poor planning. The firm was unable to control administrative cost and outdated excel systems had a negative effect on the operation of the firm. The firm was forced to seek a third party in order to procure a new system to enable better operations. The system had high initial cost to the company as employees where retrained and cost of purchase was high. The firm also was forced to operate beyond its normal capacity (Upton & Singh, 2007). The constraint had an impact on the normal operation of the firms. The firm had to incur extra cost on inventory and production. Due to their inability to anticipate demand, the firm had to hire more workers to increase their demand. The seasonal demand associated with the firm’s line of production takes a toll during low season and the firm is then forced to disrupt production. The practice poses a major threat to the very existence of the firm. The firm risks incurring more cost both administrative and operational. Increased cost of production would mean the prices of their products are increased in order to match the cost. Customers would shy off the products and seek other