What type of buffer(s) (inventory, time, or capacity) would you expect to find in the following situations? a) A maker of custom cabinets b) A producer of automotive spare parts c) A hospital emergency room d) Wal-Mart e) Amazon f) A government contractor that builds submarines g) A bulk producer of various chemicals h) A maker of lawn mowers for K-mart and Target i) A freeway j) The space shuttle k) A business school

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Answer:

a) A maker of custom cabinets β‡’ TIME, generally goods that are custom made take longer to produce and clients are aware of this.

b) A producer of automotive spare parts β‡’ CAPACITY, if more parts are needed, you will have to use spare capacity.

c) A hospital emergency room β‡’ CAPACITY, services cannot be stocked, therefore, the only possible buffer is capacity since they cannot make their patients wait in line (a dead person waiting in line is no longer a patient).

d) Wal-Mart β‡’ INVENTORY, whether a store is a brick and mortar or internet retailer, its cheapest safety stock (buffer) is generally inventory.

e) Amazon β‡’ INVENTORY, whether a store is a brick and mortar or internet retailer, its cheapest safety stock (buffer) is generally inventory.

f) A government contractor that builds submarines β‡’ TIME, submarines are very expensive and it takes years to build them, so a week more wouldn't make a difference.

h) A maker of lawn mowers for K-mart and Target β‡’ INVENTORY, the company probably knows when it is going to sell more, so it can add to its inventory of finished goods just in case.

i) A freeway β‡’ CAPACITY and then TIME, services cannot be stocked, and since it takes years to plan and build a highway or freeway, the only possible initial buffer is capacity. But once full capacity is reached, then the only buffer is time.

j) The space shuttle β‡’ INVENTORY, since you cannot go back to Earth just to get refueled, you must carry extra fuel just in case. The same for the rest of the stuff.

k) A business school β‡’ CAPACITY, services cannot be stocked, and no student will wait a few extra years just to get into the school that they love.