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tion, ordering of the parts for production, and production
scheduling, and (3) an assistant production supervisor and two
group leaders who were responsible for the day-to-day production
operations. The managing director reported to an employee of B&L
Inc.
The monthly production plans for B&L Hong Kong were prepared
by the production manager based upon information supplied to him
by B&L Hong Kong's sales and marketing personnel, the amount of
goods on hand, and the customer back orders on hand. B&L Inc.
did not decide which SKUs of sunglasses B&L Hong Kong was to
assemble or sell. B&L Hong Kong's management was responsible for
those decisions. From the monthly production plans that were
based on finished sunglasses, the production manager prepared a
weekly production schedule for each day in each week. The
production manager also was responsible for ordering parts by
taking into account the sales forecast, customer orders, the
finished goods inventory on hand, the parts on hand, and the
parts on order from B&L Inc.20 Starting in 1984, the parts
orders were prepared by B&L Hong Kong using a computer system
that utilized software developed for B&L Hong Kong by an outside
vendor it had hired.
20 Prior to placing an actual order for parts, B&L Hong Kong
also prepared a quarterly report that it sent to B&L Inc. in
Rochester to alert it to B&L Hong Kong's expected needs for
parts.
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