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Production Allocation Modeling System: Optimizing for Competitive Advantage in a Mature Manufacturing Industry
Excerpt from Production Allocation Modeling System: Optimizing for Competitive Advantage in a Mature Manufacturing Industry
Setting production targets for geographically dispersed production sites is a common problem in large manufacturing companies. Although it is a routine decision, it encompasses important but sometimes subtle tradeoffs that have a direct impact on corporate performance. The location of production clearly affects the cost of production, because the cost of inputs, as well as taxes and other financial factors, may show wide geographic variation. It also affects the cost of distributing products to customers, which is largely a function of distance. Service levels are also strongly related to the proximity of the production point to customers, and to such factors as the capacity of the plant.
Production targets also set the stage for lower level manufacturing decisions, such as production scheduling and inventory management. More generally, targets largely determine the level of utilization for manufacturing sites. At the most extreme, the allocation of production may call for a site to be shut down or mothballed.
About the Publisher
Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com
This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
Setting production targets for geographically dispersed production sites is a common problem in large manufacturing companies. Although it is a routine decision, it encompasses important but sometimes subtle tradeoffs that have a direct impact on corporate performance. The location of production clearly affects the cost of production, because the cost of inputs, as well as taxes and other financial factors, may show wide geographic variation. It also affects the cost of distributing products to customers, which is largely a function of distance. Service levels are also strongly related to the proximity of the production point to customers, and to such factors as the capacity of the plant.
Production targets also set the stage for lower level manufacturing decisions, such as production scheduling and inventory management. More generally, targets largely determine the level of utilization for manufacturing sites. At the most extreme, the allocation of production may call for a site to be shut down or mothballed.
About the Publisher
Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com
This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
28 pages, Hardcover
First published August 5, 2015
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