Product details

This is part of a case series. Compaq Computer Corp, like many manufacturers, faces operational choices that strongly influence the cost of capital engaged in inventory, customer response time, and potential product obsolescence. This case describes some key operations strategy choices regarding two types of inventory: operation inventory (eg flow) and tactical inventory (eg finished goods). Tradeoffs in inventory management and customer response times are explored in the context of a firm that is changing from a push manufacturing system to a customer-oriented pull system. Optional computer simulations, ((B) case), visually display the dynamics of push and pull systems, kanban squares, and their effect on inventory requirements and customer response times. The simulations require ProModel (sold separately - available from www.promodel.com) and computer simulation model files. The (B) case is an optional add-on that describes computer simulation models that visually demonstrate the ideas of push and pull systems, kanban squares, blocking and starving of production in kanban systems, and the effects of manufacturing choices on customer response times.