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M. Fisher, A. Raman (1996)
Reducing the Cost of Demand Uncertainty Through Accurate Response to Early SalesOper. Res., 44
(1994)
Making supply meet demand in an uncertain world
Fisher M. (1994)
“Accurate Response: The Key to Profiting from QR,”Bobbin Magazine
Reducing lead time enables a company to react more quickly to demand information and, hence, to better match supply with uncertain demand. But it is only one lever for improving response capability. Managers are familiar with others (e.g., excess capacity, supplier choice, and so forth) but lack techniques to quantify the impact of adjusting these levers. Here, we enumerate a number of these levers and present a model whereby they might be combined into effective response capability. The impact of adjusting these levers is illustrated by data obtained from a skiwear manufacturer that did so. Some of the insights that resulted run counter to intuition.
Production and Operations Management – Wiley
Published: Sep 1, 1997
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