Operations and Supply Chain Management 9th edition
Operations and Supply Chain Management 9th edition
9th Edition
ISBN: 9781119320975
Author: Roberta S. Russell, Bernard W. Taylor III
Publisher: WILEY
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Chapter 16, Problem 11Q
Summary Introduction

To identify: the effectiveness of small lot sizes in a push 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

Small lot sizes are a component of lean production. It produces on small scale and thus requires small capital and space. It is beneficial in terms of cost-cutting and reduces the overproduction cost.

Push system: Make a schedule and stock in advance to meet the forecasted demand but not based on actual demand, where the series of workstations push the completed work to the next station and finally the manufacturer push the product to the customer to buy.

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