OPERATION MANAGEMENT

Operation Management

Operation Management

Difference between a Gross Requirement Plan & a Net Requirement Plan

The make-to-stock strategy gross requirement planning is principally useful in mass demonstration environments; it is regularly merged with repetitive manufacturing. This strategy is principally useful if you deficiency to produce, in spite of whether you have stock or not.( Axsater 2006) For instance, metallic or cement producers might want to exercise this strategy because they cannot blocked down production; a detonation furnace or a cement factory must reach to produce, even if this method having to produce to stock.

Whereas the net requirement planning strategy is principally useful in ...