Question

A. Profitability and productivity are two sides of the same coin. Discuss the relationship between them and explain how the use of materials can affect either of them.   

B. Waste in both service and manufacturing organizations have common characteristics. Explain any three such characteristics as it relates to a company manufacturing pencils.                                                                                                    

C. Capacity planning is required to match demand to supply at minimum total cost. Why is it necessary to do so? What three strategies can be adopted to match demand to supply?      

Answer 1

A. Productivity - the relationship between input, and, output

Profitability - Money left after all expenses are paid. This, after manufacturing of the organization's products.

Productivity, and, profitability

Integrated Materials Management

B. Waste Characteristics, and, Lists

Waste may create a fire under certain conditions, they may corrode substances as acids, or, bases. These are unstable under normal condition, and, harmful when ingested or absorbed.

Waste characteristics, and, lists

Pencil industry waste - sawdust, air emissions, water effluents

C.

Capacity Strategies

Managing supply, demand, and, costs

Managing capacity - Managing the limits an organization's resources, such as office space, raw materials, and labour force.