Answered: Manufacturing operations can be…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Manufacturing operations can be classified according to the amount of processing or assembly that occurs after a customer order is received. The highest degree of processing occurs in make-to-order operations. A make-to-order operation does not start processing or assembling products until it receives a customer order. A moderate degree of processing occurs in assemble-to-order operations. A company using an assemble-to-order operation divides its manufacturing or assembly process into separate parts or modules. The lowest degree of processing occurs in make-to-stock operations (also called Because the products are standardized, meaning each product is exactly the same as the next, a company using a make-to-stock operation starts ordering parts and assembling finished products before receiving customer orders.

A second way to categorize manufacturing operations is by manufacturing flexibility, meaning the degree to which manufacturing operations can easily and quickly change the number, kind, and characteristics of products they produce. Flexibility allows companies to respond quickly to changes in the marketplace (that is, in response to competitors and customers) and to reduce the lead time between ordering and final delivery of products.

The next most flexible manufacturing operation is batch production, which involves the manufacture of large batches of different products in standard lot sizes. In contrast to batch production, which handles large batches of different products, job shops typically handle very small batches, some as small as one product or process per batch.

1. How are goods/ services prepared?

2. How goods/ services are being delivered?

3. What is the influence of communication to the operation? Cite specific example to expound your answer.

4. How will you address the missed sales opportunity?

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