Planning Production, Inventories, And Work Force

Planning Production, Inventories, And Work Force Book PDF Free Download

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Factory warehouse decisions.

The manager of a factory warehouse faces similar decision problems, but with a few significant differences.

If the factory warehouse supplies distribution warehouses, all under common ownership, factory failure to make a shipment promptly in response to an order may cause a distribution warehouse to lose sales, or may force a costly cross-shipment from another distribution warehouse.

Here, too, the costs for each product of holding inventory must be balanced against the costs of having too little inventory and suffering stockouts.

But operations of the factory warehouse must be coordinated not only with distribution warehouse operations but with manufacturing as well.

Factory production and employment decisions.

When the total orders received by the factory fluctuate widely, a choice must be made between fluctuations in production and factory inventory. levels.

Wide swings in inventories may require rental of additional storage space when inventories are high, and cause stockouts when they are low

Wide swings in production require either overtime when production is high and idle time when production is low, or hiring when production is increased and layoffs or transfers when production is decreased.

This choice occurs both when fluctuation is forecastable (as in the case of predictable seasonal shifts in orders) and when the fluctuations are unanticipated.

Production decisions for the factory become strongly interrelated with inventory control decisions for the factory warehouse.

At this point, production and inventory control are inseparable; if production is controlled, inventory is determined, and vice versa.

Such decisions rest on complex interacting costs: which is more expensive over time, holding large inventories, idle time, run-outs, or hiring and layoffs? Other complexities can be mentioned.

AuthorCharles C. Holt
LanguageEnglish
Pages423
PDF Size50.4 MB
CategoryEducational

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Planning Production, Inventories, And Work Force Book PDF Free Download

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