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Discussion #1
From the end of Chapter 10, answer Discussion Question 3: In general, under what conditions might a firm favor a level production plan over a chase plan?
A chase production plan over a level plan?
Discussion #2
From the end of Chapter 11, answer Discussion Question 6: The just-in-time (JIT) movement has long argued that firms should:
- Maximize their process flexibility so that ordering costs are minimal.
- Stabilize demand levels.
- Shrink lead times as much as possible.
- Assign much higher holding costs to inventory than has traditionally been the case.
Using the economic order quantity (EOQ) and reorder point (ROP) formulas, explain how such efforts would be consistent with JIT’s push for lower inventory levels
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