Arthur Tan Has Decided to Start a Business

question 86

Essay

Arthur Tan has decided to start a business.He wants to manufacture vacuum cleaners and believes in the production concept.If this approach is taken,what will be Mr.Tan's primary areas of concentration as he builds his business?

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Definitions:

Seasonal Output

Variation in the production or supply of certain products or services that is caused by changes in the season.

Short-Term Demand Forecasts

Predictions about future customer demand over a short period, usually up to one year, critical for successful inventory and production planning.

JIT

Just-In-Time, a production strategy that aims to reduce times within the production system as well as response times from suppliers and to customers.

Upstream

In the context of supply chain, refers to the activities or processes involved in obtaining raw materials or components required for manufacturing.