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One of the first ways to categorize a process is to determine if it is a single stage or a multi stage process. When you have a multi stage process sometimes work needs to be placed in a holding area. This step is called buffering. Buffering allows the stages to operate independently. Think about a production line and all of a sudden your work area piles up with the items you are working on and they are not being picked up by the next station in the process. This is called blocking. Blocking occurs when the activities in your department must stop because there is nowhere else to put the item you just finished working on. Similar to blocking, (where no work is being performed) starving occurs when the activities in a stage must stop because there is no work. A bottleneck occurs when the capacity of the process is limited. For example, if one stage is connected directly to another and the first portion is behind schedule so you can not finish the process this is a bottleneck (Chase, Jacobs, & Aquilano, 2006). A funny example of a bottleneck would be I Love Lucy when she is put on a conveyor line for chocolate and it moves so fast she can not keep up so she starts to eat the chocolate. Can you (or anyone else) think of other examples of blocking, starving, or bottlenecks?
Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..
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An analysis of the holding costs, including the appropriate annual holding cost rate.
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