In an exemplary company, there are two production areas. One area manufactures a series product with a high repetition rate and low variance. The other area manufactures systems that are highly customized and manufactured as a one- off, in exceptional cases as a small series with 3 or 4 identical systems. Only the standard parts are identical for all systems, but with a different required quantity. According to which principle would you supply the two production areas through central logistics? In your answer, differentiate between A, B and C parts (by value).

In an exemplary company, there are two production areas. One area manufactures a series product with a high repetition rate and low variance. The other area manufactures systems that are highly customized and manufactured as a one- off, in exceptional cases as a small series with 3 or 4 identical systems. Only the standard parts are identical for all systems, but with a different required quantity. According to which principle would you supply the two production areas through central logistics? In your answer, differentiate between A, B and C parts (by value).

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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