Explain what is meant by the expression “robust model”. Specifically, what would you tell a manager who exclaimed, “Uh-oh, we’re in trouble! The calculated EOQ is wrong; actual demand is 10% greater than estimated.”
Answer to relevant QuestionsWhat is “safety stock”? What does safety stock provide safety against?What is a pure strategy? Provide a few examples.As an approach to inventory management, how does MRP differ from the approach taken in Chapter 12, dealing with economic order quantities (EOQ)?What are the steps of the assignment method of linear programming?The maintenance department at Mechanical Dynamics has presented you with the following failure curve. What does itsuggest?
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