An Introduction to Linear Analysis by Donald L. Kreider, Robert G. Kuller, Donald R. Ostberg,

By Donald L. Kreider, Robert G. Kuller, Donald R. Ostberg, Fred W. Perkins, Lynn H. LOoomis

An creation to Linear research

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Numbers that are derived by analysis are printed in italics. J 1 46 Chapter 3 We assume the demand is o o o 1 80 30 for consulting positions, 40 for internship positions. 110 applications a day, of which there are for staff, and Assuming that the working day is 1 0 hours, demand is 3 consulting applications per hour, 11 staff applications per hour, and 4 applications for internships per hour. , contacting faculty and former colleagues) are requested by one product type. This is (hopefully) clear by looking at the process flow diagram.

Iron ore fines are shipped to the plant from mines in South America; the briquettes the process produces are shipped to various steel mills in the United States. The example of the Circored process is particularly useful for our purposes in this chap­ ter. The underlying process is complex and in many ways a masterpiece of process engi­ neering (see Terwiesch and Loch [2002] for further details). At first sight, the process is so complex that it seems impossible to understand the underlying process behavior without a 32 Understanding the Supply Process: Evaluating Process Capacity 33 detailed background in engineering and metallurgy.

This trade-off can be managed, as we will discover in Chapter 1 1 , but not eliminated (unless there are zero forecast errors) . ' The Process View of the Organization F I G U R E 2. 1 2 Safety I nventory at a Blood Bank 27 Cumulative 1 ,200 Inflow and Outflow 1 ,000 800 Safety 600 400 Cumulative Outflow 200 o 3 5 7 9 1 1 13 15 17 19 21 23 25 27 29 Days of the Month The resulting inventory thereby can be seen as a way to hedge against the underlying demand uncertainty. It might reflect a one-shot decision, for example, in the case of a book · retailer selling short-life-cycle products such as newspapers or magazine s.

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