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Volume Flexibility - Customers Needs For a Product
The readiness with which the operation systems output can be adjusted in response to sharp changes in customer demand. Products and services which are subject to changes in fashion present a particular challenge for the rapid adjustment of capacity. Ikea, the furniture retailer, has developed a supplier base and an efficient logistics system to allow it to react quickly to changes in demand, whilst maintaining relatively low levels of expensive inventory.
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A company has the following forecast demand for the next five months: 1,600, 2,400, 3,200, 2,800, and 2,400. The following information is also available. current
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