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Madurai Electronic Manufacturing Enterprise ( MEME ) supplies various electronic components to manufacturers of white goods such as Refrigerators, Washing Machines etc. They supply these
Madurai Electronic Manufacturing Enterprise MEME supplies various electronic
components to manufacturers of white goods such as Refrigerators, Washing Machines
etc. They supply these to the manufacturers on a justintime basis. The production
system is planned for a capacity of units per shift and currently engages its staff for
one shift per day. Because of the variation in the customers assembly operations, they
get orders ranging between units to units per day. It is the policy of MEME to
keep a minimum safety stock as ending inventory of units. The plant manager, Mr
Siripu Shekhar is considering a policy to run a second shift the next day if inventory
falls below units at the end of the day.
the annual planning
exercise of understanding how many second shifts should MEME account for? Assume
a starting inventory of units.
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