Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
9th Edition
ISBN: 9781119371618
Author: Roberta S. Russell
Publisher: Wiley (WileyPLUS Products)
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Chapter 16, Problem 10Q
Summary Introduction

To identify: why large lot size does not work well with the pull system

Lean production refers to the approach of the management aiming to cost-cutting by providing quality products to the customer by an efficient handling of input. In this approach, the management does not add any value-added thing to the production product and tried to eliminate or minimize the additional cost such as holding cost, transportation cost, stocks, and overproduction. It is composed of components

Pull system: Starts the operation based on the actual demand i.e. make to order strategy. It works backward once the employer goes back to the previous section and takes their outputs then the employer of the previous section works on replenishing the stock in line to make the order.

Large lot sizes are followed in continuous production. It produces on large scale and thus requires more capital and space.

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