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Expensive public warehouse space has to be rented to accommodate the inventory volume. Thomas also is concerned with increased lead times for both custom and standard orders, which are causing longer promised delivery times. Capacity is being pushed, and no space is left in the plant for expansion. Thomas decides that the time has come to take a careful
look at the overall impact that the new standard line is having on his operations.
1. What types of decisions must Chad Thomas make daily
for his company’s operations to run effectively? Over
the long run?
2. How did sales and marketing affect operations when
they began to sell standard pieces to retail outlets?
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