EN 0118 Chapter Notes - Chapter 1: Mckinsey & Company, Deloitte
Document Summary
Chapter 19 - review and discussion questions 2, 3, & 4 (p. 507: pure strategies use only one variable to absorb demand fluctuations. Mixed strategies involve two or more pure strategies: aggregate planning in manufacturing focuses on the allocation of the right amount of resources for every manufacturing profess. This will minimize time when in idle mode. In order to ensure sufficient supply to the market a company must conform its workforce size, inventory levels, and working hours accordingly. As a result, the company would be able to cater the actual market demand. Chapter 20 - review and discussion questions 4, 8, & 9 (p. 543: a plant manager would elect to use fixed-order quantity model when holding costs are too high. She/he would elect to use a fixed time period model when holding costs are low. Highest stock out cost is associated with buying the gas for your car: it reduces the overall inventory size within companies, thus decreasing costs.
