Balancing the Costs for Finished Goods Inventory and Production Capacity in a Make-to-Order Company
In most manufacturing companies, it is necessary to carry inventory to a greater or lesser extent in order to disconnect the activities in the supply chain that are not conducted at the same pace. This way, a smoother flow through the chain, from raw material extraction to arrival at the final customer of a finished product, is facilitated. However, different parts of a company often have conflict
