Setting Production policy
Seasonal sales are typical in most company. Yet production efficiency is usually enhanced by relatively stable product are seasonal, production levels are stabilized by developing new products that can be stored or that have inverse seasonal patterns. inventory-fluctuation provides a temping method of leveling production, yet as previously discussed, certain pitfalls should be considered. Stabilization of production is desirable for a number of compelling reasons and generally results in significant reductions of costs and improvements in operations. The advantages of stable production levels can be outlined as follows: