EBK PRODUCTION AND OPERATIONS ANALYSIS
EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 8220102480681
Author: Olsen
Publisher: WAVELAND
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Chapter 8.5, Problem 31P
Summary Introduction

Interpretation:MRP lot-sizing calculations consider safety stock also. Explain why it should or should not be done. Comment on the statement that “A production manager who is behind schedule would not like to add to safety stock”.

Concept Introduction:MRP calculates the lot-sizes on the basis of pre-estimated demand, lead time etc. Variations are all around us in the world. Safety stock is a considered ‘insurance’ against normal variations. This is built in all calculations except the EOQ calculations.

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