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Reaching the Goal: How Managers Improve a Services Business Using Goldratt’s Theory of Constraints by John Arthur Ricketts

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A. Resource Optimization

Replenishment for Services

Assumptions

Cost Factors

Noncost Factors

Optimization Model

Optimal Buffer Sizing for Nonconstrained Resource

Optimal Buffer Sizing for Constrained Resource

Resource Management Notes

Summary

Chapter 4, "Resource Management," covered the basic method for buffer sizing and buffer management under Replenishment for Services (RS). For many skill groups, the intuitive approach presented in that chapter works well. If the buffer level doesn't reliably synchronize supply with demand, manually tweaking the thresholds between buffer zones or the buffer size itself can be sufficient to tune RS until the buffer level is just right.

The basic method, however, omits several factors that ...

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