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1.TA says inventory are tied up capital and thus should be avoided.
However, does that imply that no inventory should be kept ?2. Should idle time be avoided in areas of production which are non bottleneck?
TA assumes that inventory levels are kept to a. minimum (in an ideal world that would mean no inventory, in the real world then as low a level as possible).
They should always try to avoid idle time because it means that are paying workers when they are not doing any work.
“They should always try to avoid idle time because it means that are paying workers when they are not doing any work.”
– I am a bit confused here.
If for example machine time is the bottleneck and labour is non bottleneck. Then obviously there will be idle time for labour. Then how can we avoid idle time for labour? By sacking some workers?The bottleneck is just one process. In the non-bottleneck processes they will not be working to full capacity and they should try to avoid idle time for labour. It might not be possible but they should try to, which might well mean having fewer workers in the non-bottleneck processes.
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