mini-case 8 - Mini-Case 8 The last mini-case is a...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Mini-Case 8 The last mini-case is a comparison of two types of production strategy. We are comparing the costs of demand chase aggregate to that of a level production plan. From all your JIT research and study, you know that inventory is expensive to maintain. That is equally true whether it is inventory awaiting further process, or product awaiting sales. What should also be obvious is that it is not costless to hire and fire people. In this case your predictions of gasoline and motorcycle sales were so good at the marina location that the company succeeded beyond all expectations! Because of your previous forecasting success, you have been tapped to explore what production planning method would be most cost effective. This must mean you remembered not to ask about Mr. Zoomer’s statistics grade! ZoomZoom currently uses a demand chase aggregate plan, but Mr. Zoomer has heard the term of level production. Your boss with his degree in Music thinks that if you can eliminate the hiring and firing of people, the savings
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/13/2010 for the course BUS BUS 335 taught by Professor Griffin during the Fall '07 term at Peru State.

Page1 / 2

mini-case 8 - Mini-Case 8 The last mini-case is a...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online