Logisticians are trained to identify trade‐offs and to devise compromising solutions which produce the lowest total costs. For example, the economic batch size is a compromise between setup costs and inventory carrying costs. Presents a problem‐analysis technique which helps the analyst to eliminate the problem so that no compromise is necessary. For example, instead of balancing inventor…
In recent years a growing number of firms have reported dramatic results from an operation's improvement technique called Constraint Management (CM). For example, Ford Motor Company's Electronics division attributes reductions in manufacturing cycle time as high as 89 per cent, 76 per cent fewer product returns, reductions in inventory of 49 per cent and 43 per cent lower freight costs to its…