Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Sub optimisation - Operations Function
Another important issue raised by the systems approach is that of sub-optimisation. This is of considerable significance for managers, as it refers to situations where a sub-system is configured such that its performance appears to be optimal, yet the performance of the larger system is prejudiced. A hypothetical example might be a firm comprising several divisions (sub-systems), one of which is responsible for the assembly of final products.
The management of this division decides to reduce operating costs by cutting the stock levels of component parts, and placing replenishment orders for smaller quantities, and more frequently than previously. If this division is supplied by other manufacturing divisions of the firm, they may be obliged to produce in uneconomically small batches: the resulting increases in set-up costs of the supplying divisions may turn out to be greater than the stock-holding savings made by the assembly division. What appears to be optimal for a sub-system (the assembly division in this case) may not be not be optimal for the higher level system (the firm).
What do you predict for the future of global air transportation?
meaning of operation function in operation management
Must use Excel for solution Zip Games purchases blank 3.5-inch disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.20. Processi
Are there situations in which self-preservation is not the highest value?
what are the factors affecting plant layout
I borrowed the book of cost accounting and brought the answer of the questions about three months ago. You charge me $15.94 for the answers per month. Now, I have returned the book
A diet is being prepared for the University of Arizona dorms. The objective is to feed the students at the least cost, but the diet must have between 1,800 and 3,600 calories. No m
Analyze the steps involved in preparing a cash budget and determine which steps presents the GREATEST number of obstacles to the GREATEST number of small businesses. Explain your r
Ethical Dilemma CRM: Targeting or Discriminating? Are they ethical? Why or why not.
Clerks at Lotsa Data Systems key in thousands of insurance records each day for a variety of client firms. The process is in control but CEO Donna Lotsa wants to be sure that at
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd