The effect of stable and unstable master production schedule on the lean production system. Introduction: The profit-leverage effect would reduce the inventory cost, which would improve the profit of the firm. When the purchase cost reduces, the profit and sales would increase equally.

Question

Describe outsourcing methods, taking into account the complexities of the supply chain design. Furthermore, what is the appropriateness of outsourcing with regard to decision making and vertical integration, as these principles influence the management of the whole supply chain?

Answer 1

Question

Chapter 17, Problem 2DQ

Summary Introduction

To determine: The effect of stable and unstable master production schedule on the lean production system.

Introduction:

The profit-leverage effect would reduce the inventory cost, which would improve the profit of the firm. When the purchase cost reduces, the profit and sales would increase equally.

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