Chapter 8 - Operations Management and Supply Chain Management

Q1. Define the term operations management

OM is the management of systems or processes that transform and convert resources into both goods as well as services. It includes inputs, transformation and outputs

Q2. Explain operations management's role in business

The diffeirng roles include:

• Attain company profits through efficiency and quality of the product
• Forecasting
• Managing Inventory
• Motivation of staff members
• Must know about companys sales, manufacturing and distribution

Q3. Describe the correlation between operations management and information technology

Managers often use IT to heavily influence operations management decisions.
This is in regards to recource amounts, tasks and the completion of them where and who exactly will execute the task.


Q4. Explain supply chain management and it's role in business

Involves the management of all information that flows through the supply chain. Recources become converted into products which get delivered to customers.

It is used to maximise the total effectiveness and profitability of an organisation.

 

Q5. List and describe the 5 components of a typical supply chain

1 - Supplier: raw materials, may have subsuppliers
2 - Manufacturer: makes the service or product, uses these raw materials
3 - Distributor: hands out the product through shipments, schedules
4 - Retailer: sells the product, transfer of money occurs
5 - Customer: consumes the product



Q6. Define the relationship between information technology and the supply chain

Information technology: improved forecasts, integral systems. It advances in the 5 previous stages mentioned

The supply chain: decreases buying power which ultimately increases the supplier power


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