Information And Control for Resource Management in a Growing Market

Cover Information And Control for Resource Management in a Growing Market
Information And Control for Resource Management in a Growing Market
Carl V Carl Verner Swanson
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For example, customers might order ahead when a competitive variable deteriorates in anticipation of further deterioration instead of reducing orders as as- sumed above. Capital goods' and durable goods' markets also have dif- ferent dynamics. Customer needs are satisfied by an inventory of goods. When needs are growing, orders rise to high levels, but as the customers' inventory is filled, the order rate falls as customers order only for replacement. The information flow, resource control poli...cies, and re- source packages which are used to exploit markets with different dynamics - 25 - need to be altered from those recommended above. Third, the policies that control the balance between flexible and the fixed resources need to be carefully designed so that the organization does not raise costs by using expensive, flexible resources to bail itself out of crises that would have been avoided by better management of fixed resources. The study of the Scannell Trucking Company[16] illustrates how a company can implement the recommended policy.

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