OIT Notes:

Service:
1)
2)
3)
4)

Customer is the flow unit

Supply control variable is capacity
Variability in timing when demand arrives during the day
Waiting times matter greatly

Manufacturing:
1)
2)
3)
4)
5)

Materials are the flow units

Supply control variable is inventory
Can store excess demand
Waiting times can be less important
Variability in quantities (total demand, yield)

Class 2: Predictable Variability

Variability depends on
1) Customer arrival
2) Provider variability
Classify sources of variability by predictability
1) If predictable -> seasonal such as year or time of day
2) Unpredictable -> often emergency