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Though the objectives of PPC for MC remain the same as for conventional production, the highly diversified customer orders create new challenges: 1 difficulties in forecasting, 2 altered economies of scale, and 3 shortened lead time. Standard methods and machines are used during part manufacture.
This system is very flexible as management has to manufacture varying product types. References Adler PS Managing flexible automation.
Material handling systems are also flexible to meet changing product requirements.
Q14 Why forecasting is important and What type of forecasting methods candidate knows? In process inventory is usually high owing to the type of layout and material handling policies adopted.