Question

1:42 docs.google.com With respect to physical constraints in production, please compare Bottleneck Work Activity Vs. Non Bottleneck Work Activity. (5 Marks) Your answer Please define dynamic demand: (2 Marks) Your answer Please identify the four types of inventory that will be used and stored in a typical manufacturing operation. (5 Marks) Your answer Please define lost sale: (2 marks) Your answer

Answer 1

1. The physical constraints in production involves inventory, money, and other resources. The obstacles hinder the overall productivity by increasing the subsequent costs and decreasing efficiency. The bottleneck in a production process refers to that factor, which influences the whole production chain. It stalls the production process and also increases the subsequent costs. The bottlenecks can lead to less employee satisfaction and less morale. Nonbottleneck activities do not influence the whole production chain. The managers can amend the flaws, and continue the production. It is a comparatively short term hindrance. Hence, bottlenecks have much more impact on the work activities and the production processes.

2. Dynamic demand is the process that many companies use to adjust their inventory and resources. For instance: the process helps the company know about the inventory adjustment of durable and non-durable products. It helps the company know about the storage of non-durable goods not to face any losses. The process also helps the managers to know about the elasticity and price changes in the short term and long term.

3. Four types of inventory are raw materials, finished goods, work in progress, and maintenance, and repair goods. The Raw materials are the foundation of any production or manufacturing process. The company should have proper inventory if raw material. Work in progress goods are the intermediate goods because they are not final yet. Hence, the manufacturing houses can also sell these products. The next type is the finished goods. The finished goods are the end products, and they reach the end consumer. The consumer uses the goods for different purposes. The last category of maintenance and repair goods includes the spare parts or various parts of the machinery. The company can use it in difficult times.

4. The lost sale is a concept that defines lost income or revenue. The main reason behind this is internet piracy. The users tend to use illegal means at low cost or no cost to avail the same service. For example, Netflix charges its services, but many pirated sites provide the services at no cost. So, this is lost sales for Netflix.