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demand will not be equal, what actions could the manager take to increase the probability
of achieving a match?
Answer:
It is important to match supply and demand because having excess supply or excess demand is
wasteful and costly; having too little means lost opportunity and possible customer
dissatisfaction.
If supply is less than demand then manager can schedule more production by increasing Hours,
Hiring temporary workers, Ordering more raw material, Increasing the inventory, Renting a new
raw material storage, Starting with over time allowances, Extra shift hours. Etc.
If demand is less then manager can cut hours, layoff people, reduce shift hours, give a
production break to the employees, and manage the inventory so that nothing gets wasted.
-List the key ways that organizations compete.
Answer:
1. The key to successfully competing is to determine what customers want and then
directing efforts toward meeting (or even exceeding) customer expectations.
2. Two basic issues must be addressed. First: What do the customers want? (Which items on
the preceding list of the ways business organizations compete are important to
customers?) Second: What is the best way to satisfy those wants?
3. The Operations must work with marketing to obtain information on the relative
importance of the various items to each major customer or target market. This can help
understanding competitive issues can help managers develop successful strategies.
30,000
33,600
32,200
35,400
Briefly discuss the advantages and disadvantages of each of these planning Strategies.
a. Maintain a level rate of output and let inventories absorb fluctuations in demand.
Answer:
a. Maintain a level rate of output and let inventories absorb fluctuations in demand.
Disadvantages:
Advantages:
Its costly
Risk that there will not be sufficient pool of workers with the required skill.
Requires significant amount of paper work.
Intrusion of Labor union.
Advantages:
C. Maintain a constant workforce size, but vary hours worked to correspond to predicted
demand requirements
Disadvantages:
Its costly
People tend to get use to such a kind of working hours
Over use of the equipment and facilities
Advantages: