A particular product is produced on a fabrication line. Using the finite replenishment EOQ model, the suggested
Question:
A particular product is produced on a fabrication line. Using the finite replenishment EOQ model, the suggested run quantity is 1,000 units. On a particular day of production, this item is being run near the end of a shift and the supervisor, instead of stopping at 1,000 units and having to set up for a new item (which would make her performance look bad in terms of the total output), continues to produce the item to the end of the shift, resulting in a total production quantity of 2,000 units. Discuss how you would analyze whether or not she made a decision that was attractive from a company standpoint. Include comments on the possible intangible factors.
Step by Step Answer:
Inventory And Production Management In Supply Chains
ISBN: 9781032179322
4th Edition
Authors: Edward A Silver, David F Pyke, Douglas J Thomas