Question: i have to respond to the below mentioned answer given by one of my class mates to the following question. pls state what lacks in
i have to respond to the below mentioned answer given by one of my class mates to the following question. pls state what lacks in his answer and also some positive comments for his answer. dont make it too long
Q: Distinguish between pure and mixed strategies in production planning.
his answer is
One of the most precarious aspect in production is to know and decide on the exact quantity to produce and when to produce along with when to bring in supplies. On one hand failure to meet production quantity may reduce buyer confidence but also having more supplies in anticipation is also heavy on cost. Hence proper planning is required to determine best course of action. There are two main type of strategies. Pure and mixed strategies. Pure strategy includes, Chase strategy, level strategy and stable workforce. In pure strategy only one of these are strictly followed. It uses only one variable to address the demand fluctuation. Chase strategy: Chase strategy is when the production is set according to the demanded quantity. It is also known as lean production strategy as it leaves no left over production. This strategy is commonly used by food manufacturing firms who battles perishability in supplies or firms who has an issue with cash flow and wont risk unsold goods. Level Strategy: this strategy is used when demand is cyclical or seasonal. It seeks a steady same level of production and employment. Supplies are kept a bit higher than needed as production are kept stable in low demand and when demand picks up, they can respond to the increased margin. Stable Workforce Strategy In this strategy, the workforce is kept stable. Overtime and part time duties are allowed. It ensures that workforce stays same on regular intervals. In this strategy productions is influenced by overtime and level of inventory. When demand decrease some workers may find themselves idle. (Studious Guy, n.d.) Mixed strategy is when a combination of pure strategies are being used. Mixed strategy is used by industries who faces considerable product differentiations and attribute changes due to demand. Its a hybrid system which combines both inventory and workforce productivity. It maintains surplus inventory for expectant demand and back orders to keep up with it. Temporary jobs are created to scale up production when needed and even may lay off workers when demand drains out. For example under mixed strategy the inventory and workforce are allowed to change in planning stage and thus it becomes a combination of chase and level strategies. Mixed strategies are implemented for cost effectiveness when the costs of maintaining inventory and changing workforce level are relatively high. (HARAPPA, n.d.)
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