Question

will be no competition (i.e., waiting time) at any of the machines. Determine a set of D1, D2, Ds) values that will minimize the average WIP in the system (that is, D, under this form of control. (d) (15 points) Using your solution to part (c), determine the average total WIP in the system. 5. Short Answer. Answer the following 3 questions are independently of each other. (a) (25 points) In the context of supply chain engineering, what is customer differentiation? What potential benefit does it provide? (b) (25 points) In the context of supply chain engineering, what is delayed differentiation? What potential benefit does it provide? (e) (25 points) Consider the utilization example from class. That is, demand = 10,000 parts/wk; processing time per item 6 seconds; changeover time per batch 5 minutes and the machine is available to work 10 hrs/day, 5 days/wk. Assume that the machine is utilized during a changeover and the production runs have a constant batch size B. That is, each time the machine is set up, exactly B parts are processed.] Determine the utilization as a function of B. By varying the value of B, determine the limiting maximum and minimum values for the utilization (r

Answer 1

a) Customers needs to be convinced for them to recognize a brand. For this customer differentiation needs to be done. The needs of the customer must be met base on what they value. The customer should notice the product in the market and be satisfied with it. The firms needs to deliver something to the customer, that they value and something that their competitors don't. Variations between individual customers are the difference between them and hence meeting this will allow firms to differentiate between the customers and also get good customer support. This makes the customer loyal to the firm and select the firm in the future. Marketing, sales techniques are used to differentiate between customers.

b) In this concept, the manufacturing process a end product is differentiated on basis of making a family product. This method is followed in industries where there is a need to address the final demand. It is also known as postponement. Example is UCB whose sweaters are white and further variants are made based on customer needs. If there is a high demand uncertainty in a industry this method is followed because it helps diminish uncertainty. Paint companies also use this method to diminish uncertainty. Another benefit is inventory management as it reduces the inventory while also satisfying the customer.