Primary Industry 

Managing demand within the mining sector appears to be a straightforward task, dug out the commodities and ship to customers. However, the sector is inherently unique. It is a capital intensive industry. That is, the cost of production set up is high and the flexibility to adapt to change quickly is almost non-existent. However, demand variation is considerably predictable and visibly cyclical, giving decision makers the opportunity to reasonably determine scope and scale of production set up and also planning capacity within its financial capabilities. Due to being a capital intensive industry, during period of consistent high demand organisations operating in the industry can take advantage of reduced marginal cost, as a result cost consideration is a significant part in the operations planning process

Smyna
Supply Chain Consulting

 

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