Having animation capabilities to graphically display product flows through a
production system is not considered a desirable feature of simulation software systems.
Service guarantees can be used at the service design stage to focus the firm’s delivery
system on the things it must do well to satisfy the customer.
Best operating level is the volume of output at which average unit cost is minimized.
A free trade zone operates under different rules and laws than a foreign trade zone.
In solving a decision tree problem, calculations start at the ends of the “branches” of the
tree and work backward to the base of the tree.
One of the daily, delicate balancing acts that logistics managers have to perform
involves the trade-off between inventory costs and the cost of stock-outs.
When recovering from a defective service encounter, a botched task calls for material
compensation.
Standard practice in statistical process control for variables is to set control limits so
that 95 percent of the sample means will fall within the UCL and the LCL.
An inventory system is a set of policies and controls that monitors levels of inventory
and determines what levels should be maintained, when stock should be replenished,
and how large orders should be.
The “dollar days” inventory measurement results from a complex algorithm used to
compute individual units of inventory and their respective ordering and holding costs.
Companies typically seek out operations consultants when they are faced with major
investment decisions or when they believe that they are not getting maximum
effectiveness from their productive capacity.
Johnson’s rule, a priority rule used in sequencing production jobs, is used only in
production situations where we are dealing with one machine or one stage of production
activity.