Identify the methods by which a manager of a firm can respond to variability.

1 answer:

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The methods by which a manager of a firm can respond to variability are finding those sources which result in this variance, and then eliminating them, investing in technology that is flexible as well as cross-training the labors and to reduce the impact of variability they may use high safety stock for high variable values.

Using the cross training methods, the managers can increase capacity by increasing flexibility. The variability in input, output or other activities may result in increase in variance of different processes.

High variance may increase may increase flow time in a process and also consume capacity in it. This may also result in increase in process congestion.

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