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Information Systems - Products for which demand is predictable

"Products for which demand is predictable and relatively stable are called staples. Products for which demand is unpredictable and which have relatively short life cycles are referred to as innovative products. Identify examples of staples and innovative products and explain whether MRP-II or JIT manufacturing is appropriate for each type of product. What other implications does the type of product have on the value chain activities of inbound logistics, production, and outbound logistics?"

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In order to choose the right supply-chain strategy for a particular product we should understand the nature of the demand, product variety, and market standards for lead times and service. First of all staples satisfy basic needs and tend to have very stable and long product life cycles. Since their stability invites competition, this leads to low profit margins. Thus as a result of profit margin pressures, these products require very efficient supply chains that are concerned with meeting customer demand at the ...

Solution Summary

"Products for which demand is predictable and relatively stable are called staples. Products for which demand is unpredictable and which have relatively short life cycles are referred to as innovative products. Identify examples of staples and innovative products and explain whether MRP-II or JIT manufacturing is appropriate for each type of product. What other implications does the type of product have on the value chain activities of inbound logistics, production, and outbound logistics?"

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