BUAD 311 Final Exam Notes

BUAD 311 Final Exam Notes - News Vender Model Linear...

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News Vender Model Linear purchasing cost Uncertain Demand (one period) Tensions between set up cost and inventory  holding cost no relevant Capacity Flexibility Flexible capacity is better equipped to meeting  changing demand Many car manufacturers have flexible assembly  lines today Zara  Vertically integrated company Example in which fast supply-chain speed and  better forecasting help the company achieve  high operating margin Investment in IT Benetton Backwards (downstream)- integrated company Simulation Game High utilization rate at a given station implies the  departure rate from that station is approximately  the station’s capacity A good strategy for game 1 was to immediately  buy a machine for station 3(bottleneck)  Prioritizing buffer 2 at station 2 doesn’t risk idling  machines at station 3 Inventory system for kits is a continuous system
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This note was uploaded on 08/31/2008 for the course BUAD 311 taught by Professor Vaitsos during the Spring '07 term at USC.

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BUAD 311 Final Exam Notes - News Vender Model Linear...

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