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Literature & Language
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Topic:

Why Do Accounting and Law Firms Do Not Implement Level Production Strategy?

Essay Instructions:

A level production strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern. Describe why or why not a pure service industry (e.g. accounting or law firms) may or may not be able to implement this type of technique.

Essay Sample Content Preview:

Production Strategy
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Production Strategy
A level production strategy is a strategy that depends on a constant output rate, capacity, backlogs and inventory. This technique varies with the particular service industry. It is based on the suppliers' needs and demands, although most businesses in the service industry have backlog and inventory levels (Jonsson & Rudberg, 2014). However, pure service industry like accounting or law firms cannot implement a level production strategy.
One of the reasons a service industry like accounting or law firms cannot implement this type of technique is that these industries should hold an inventory of goods to satisfy the consumer orders for a level production strategy to rely on constant output rate and capacity. The use of a level strategy requires a company to produce constantly irrespective of the demand level (Jonsson & Rudberg, 2014). However, service industries ...
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