Portal:Business/Selected quote/97

''Every manufacturer  is  confronted  with  the  problem  of  finding the  most  economical  quantity  to manufacture  in  putting  through  an  order. This is a general problem and admits of a general solution,  and, however  much  it  may  be  advisable  to  exercise judgment in a particular  case, such  exercise of judgment will be assisted by a knowledge of the general solution.''

''The writer has seen the practical workings of a first-class stock system and does not wish to be understood as  claiming that any mere mathematical formula should be depended upon entirely for determining the amount of stock that should be carried or put through on an order. This is a matter that calls, in each  case, for a trained judgment, for which there is no substitute.''

''There are  many other factors of even more importance than those given in this discussion. But in deciding on the best size of order, the man responsible should consider all the factors that are mentioned. While it  is  perfectly  possible  to  estimate closely enough  what  effect these factors will have, the chances are many mistakes costing money will be made. Hence, using the formula as a check, is at least warranted. Given the theoretically correct  result, it  is easy to apply such  correction  factors as may be deemed necessary.''


 * &mdash;Ford Whitman Harris, How many parts to make at once, 1913

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