MB0044 – Production & Operations Management
Q.1. what do you understand by Vendor-managed Inventory (VMI)?
Ans. Vendor managed inventory: The very purpose of JIT is to reduce Inventory at all places in the supply chain. Inventory is considered a waste because Inventory is created by using materials, machines and efforts of persons. All of these Are resources which have already been used up and that portion of it which is not Consumed and sent up the value chain causes a drag on the system.
However, inventories are inevitable because uncertainties exist at every Stage, making it necessary to provide a buffer so that demands do not go unfilled. The challenge is to keep it to the minimum. To make this happen, the calculations involving the following are necessary.
* Forecasts of the market demand
* Capacities of the equipments
* Worker absenteeism
* Suppliers’ lead times
* Quality of the produced components
Each of these will have many factors which affect them. JIT depends upon accurate assessment of them and based on the decisions taken, activities are initiated. These should result in holding materials as small as the number of Components or products as feasible to maintain flow of material without disruption. Many companies make their suppliers hold their inventories and request them to make timely supplies. This may be done at a cost
Q.2. Explain briefly the four classification of scheduling strategies & its approaches.
Ans. TYPES OF SCHEDULING STRATEGIES: Burst Campaigns: often associated with the awareness objective, the burst campaign compacts media activities into a series of relatively short time frames, with relatively long periods of absence from media activity in between. This pattern may be used when a new product is being introduced. Fighting: Wave method or the fighting method is another kind of scheduling. In fighting, advertisements are bunched with the intention of providing a concentrated impact. It is another method of creating an advertising schedule. The phrase advertising flight describes the time when commercials are aired. When fighting is used in relation to a scheduling technique, it refers to a method that has advertising going on and off the air. The advantage of the fighting technique is that it Allows a campaign that does not have funds for running spots continuously to conserve money and maximize the impact of the commercials by airing them at key strategic times during the campaign. Frequently when fighting is employed, radio or cable TV will be used to supplement the advertising campaign during the times when television commercials are off the air. This method of media planning allows the messages and themes of the campaign to reach the voter through radio or cable TV, less costly alternatives to broadcast TV. Overview: Henko Stain Champion Powder (HSCP) was launched in July 1994 in South India. It was clearly positioned as a brand in the premium segment of detergents among HLL’s Surf Wash Booster (today’s Surf Multi-Action).Battling consumer inertia to try out this new brand was its toughest challenge and carving out pride of association was the other issue. Continuous Campaign: Another approach mostly associated with reminder campaigns, is to extend the time frame of the advertising message over a long period. The campaign provides continuity of the message, although at the cost of the impact. These continuous patterns are often used for mature products, where reminder advertising is appropriate. Over a long term .this strategy is more appropriate for products and services where the demand is constant or there is a long purchase cycle.
There can be perfect continuous advertising, rising continuity or falling continuity.
1. Rising continuity: this pattern is used when the advertising circles around a particular event. E.g. the advertisement for Paints generally increases during the festive seasons like diwali. 2. Falling...
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