Denver Facility Essay Example | Topics and Well Written Essays - 500 words

Denver Facility - Essay Example In this case, the inventory management problem is a part of operations scheduling problem. The timing of activities has a direct impact on resources and on time loading. Denver does not take into account the fact that the majority of people have a productivity rate of probably 60-70 per cent of the time they allocate to an activity. Also, the department collected data on the number of trucks only paying no attention to the daily volume on Tuesdays and Friday. The consequences of these issues are work overload and poor service (Barnett 1996). Another problem is product shortage caused by inefficient production facilities and absence of advance notice and ordering system. Loading procedure of the polyols leads to "queues that impede other plant traffic" and absence of proper safety measures. For instance, excess capacity gives rise to low resource productivity, while inadequate capacity or means poor customer service. Decisions made in other areas have a direct impact the other area. Capacity decisions have a direct impact on system performance and on both resource utilization and customer service. It is important to note that organizations cannot operate without good capacity management.