In your role as Manychip’s production planning staff member, one of your tasks is to help the supply chain team focus on capacity planning. One of the key production plants in the supply chain currently uses a lead capacity strategy in which they make enough chips to offset demand even when this means excess inventory levels at times.
1. Define the lead, lag, and match strategy for capacity planning.
2. Recommend a better strategy for the Manychip’s production strategy, outlining the advantages of your proposal. Should they change from the lead strategy or not?
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