The Following Reasons Have Been Offered for Holding Inventories: 1

question 1

Essay

The following reasons have been offered for holding inventories: 1. To balance ordering or setup costs and carrying costs.
2. To satisfy customer demand (e.g., meet delivery dates).
3. To avoid shutting down manufacturing facilities because of
(a) machine failure
(b) defective parts
(c) unavailable parts
4. Unreliable production processes.
5. To take advantage of discounts.
6. To hedge against future price increases.
A)Explain how the JIT approach responds to each of these reasons and,consequently,argues for insignificant levels of inventories.
B)The theory of constraints (TOC)criticizes the JIT approach to inventory management,arguing that it fails to protect throughput.Explain what this means and describe how TOC addresses this issue.

• A)Explain how the JIT approach responds to each of these reasons and,consequently,argues for insignificant levels of inventories.
• B)The theory of constraints (TOC)criticizes the JIT approach to inventory management,arguing that it fails to protect throughput.Explain what this means and describe how TOC addresses this issue.

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Definitions:

Civil Liberty

The freedoms and rights that individuals have to ensure their ability to participate fully in the civil and political life of their society without discrimination or repression.

Mackay Radio

The Mackay Radio decision (1938) by the U.S. Supreme Court affirmed the right of employers to permanently replace striking workers, impacting labor relations and the balance of power between employers and unions.

Economic Strike

A strike action undertaken by workers to achieve better wages, hours, and working conditions, as opposed to strikes for political reasons.

NLRA Section 8(a)(3)

Part of the National Labor Relations Act that outlines unfair labor practices by employers, particularly around discrimination against employees for union involvement.