Business – 4.1 The nature of operations – Operations methods | e-Consult
4.1 The nature of operations – Operations methods (1 questions)
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Impact on inventory management:
- Reduced work‑in‑process (WIP) inventory because products move continuously through the system.
- Lower safety stock levels as the production rate becomes more predictable.
- Greater reliance on accurate demand forecasting to avoid over‑production.
Impact on quality control:
- Defects are detected earlier, since each unit passes through the same standardized process.
- Statistical process control (SPC) can be applied more effectively, enabling real‑time adjustments.
- However, a breakdown in the line can spread defects quickly, so robust monitoring is essential.