Using a computer model to evaluate business operating plans

Abstract
This paper describes a simulation model that can be used to examine plans for marketing, manufacturing, and distributing the products of an assembly line. The manufacturing plants are flow-oriented and use assembly lines to integrate subassemblies and pur chased parts into products. The simulation permits an economic evaluation of alternative allocations of manufacturing, marketing, and financial resources to select a best response to changes in customer demands. As an illustration, we compare the effects of two production schedules on inventory levels.

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