Discuss the approaches a firm can use to manage inventory to meet predictable variability of demand
What will be an ideal response?
Answer: When managing inventory to meet predictable variability, firms use a combination of the following approaches:
• Using common components across multiple products: In this approach, a firm designs common components used in multiple products, with each product having predictably variable demand that results in relatively constant overall demand. Use of common components across these products will result in the demand for the components being relatively constant.
• Build inventory of high demand or predictable demand products: When most of the products a firm produces have the same peak demand season, the previous approach is no longer feasible. A firm must then decide which inventory to build during the off season. The answer is to build products during the off season that have more predictable demand, because there is less to be learned about their demand by waiting. As more is known about demand closer to the selling season, production of more uncertain items should take place. This strategy helps the supply chain better synchronize supply and demand.
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Benz & Frendz Corp, a manufacturer of high end consumer durables, experienced a sluggish sales growth in most of its product categories during three consecutive quarters of 2009
However, market analysis revealed that its competitors' sales had also slackened during this period. Analysts pointed out that when all firms are losing sales, it is extremely important to adopt strategies that are aimed at retaining customers. This led the firm to reduce operation costs while maintaining product quality. They also revamped their marketing strategy to focus on the values created by their products. Which of the following can be inferred from the strategies adopted by the firm? A) The company was trying to protect its market share and continue to operate as a market leader. B) The company was focusing on geographical expansion. C) The company was aiming to capture a new market segment. D) The company was marketing its products amidst an economic downturn. E) The company was focusing on market penetration.
Based on their function, business reports typically fall into one of two categories: instructional or persuasive
Indicate whether the statement is true or false
Ten high-technology batteries are tested for 200 hours each. One failed at 20 hours; another failed at 140 hours; all others completed the test. FR(%) is ________ and MTBF is ________
A) 20%; 880 hours B) 10%; 1980 hours C) 20%; 1760 hours D) 20%; 1000 hours E) 80%; 920 hours
Which of the following tactics is designed to encourage adaptation to the organization's culture?
A. allowing organizational membership regardless of whether or not any specific requirements have been met B. using no examples of what an employee is supposed to be like C. constantly reminding newcomers that they are now part of a group and that this new group helps define who they are D. allowing newcomers to interact with current employees while they are being oriented E. orienting new employees in a solitary setting to avoid overwhelming them with both new tasks and new people