Dampening Production Level Response to Order Backlog Changes

Abstract

The textile industry is well known for its cyclical characteristic. The ups and downs, however, are largely due to changes in the order backlog position and the subsequent response in production and inventory levels. The purpose of this report is to demonstrate a method whereby management can more effectively control its productive response to changes in the backlog, thereby tending to permit less inventory speculation as backlogs rise and reducing price weakness as backlogs fall. In addition, sharp changes in production levels are avoided and inventories maintained for actual requirements only. Management Technology, ISSN 0542-4917, was published as a separate journal from 1960 to 1964. In 1965 it was merged into Management Science.