Business Administration the Principles of Business Organization And System And

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There must be added the element of analysis of orders, and following up of jobs. The sales de- partment secures orders, and the shipping department sends out goods to fill them. In the meantime, between these two departments, has been conducted the important work of pro- duction. How is this work carried on so that there shall be enough goods to ship and that they shall be ready on the date promised? Some factories manufacture only on order. Others manu- facture for stock. In the first instance..., the customer's order becomes the immediate basis of production ; but in the second, the production management is expected to have enough goods on hand at any given time to fill all the orders likely to be received. The only difference is that in one case orders are waited for, while in the other they are anticipated. Fac- tories run on either basis must so regulate production as to be able to satisfy customers in their shipments. But this is not the only consideration in a production system. Not only must plenty of goods be made, but there must be such grouping of the processes, such quantities going through the shops at one time, that the most economical conditions of production may be secured.

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