Alternative production decisions
Production decisions using level and chase strategies are presented in your textbook as valid alternative mechanisms of scheduling production.
Quantitative models are typically evaluated using lowest cost as the primary decision criteria, with issues such as shortage costs and layoff costs handled by estimating the effect on costs. While lowest cost may be appropriate in some cases, the long-term implications of customer service and supply chain management may dictate a solution that is not "lowest cost."
Remember way back to our discussions in Chapter 2 of the three basic strategies for achieving a competitive advantage through operations? Those strategies are:
* Differentiation.
* Low cost.
* Response.
While it makes sense that a firm that is attempting a low-cost strategy would evaluate its quantitative production decisions on a low-cost basis, those firms seeking a differentiation or response strategy might not opt to evaluate production on cost, alone.
Post
1. To that end, what other quantitative or qualitative criteria might a firm use if it was following a:
* Differentiation Strategy.
* Response Strategy.
2. Post at least one quantitative or qualitative criterion for each in a separate post one for Differentiation, one for Response.