Goods-Service Continuum
Most Products are a Bundle of Goods and Services
Production Management
Describes all the activities performed by
... [Show More] companies to create goods.
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IS Role in OM
Involve many alternatives that have various short and long term impacts and improve with quality information
Material Requirements Planning (MRP)
- Uses Sales forecasts to ensure inputs are at the right time and place for production • Global Inventory Management Systems (GIMS)
- Locate, track and predict movement of materials worldwide
Operational Planning & Control (OP&C)
Deals with day-to-day procedures for performing work
Inventory Management Systems
Maintains accurate inventory records and provides inventory data to other systems to manage order processing, production, cash budgeting, and marketing
Transportation Planning Systems
Tracks and analyzes the movement of materials and products to ensure the delivery of materials and finished goods at the right time, the right place, and the lowest cost
Distribution Management Systems
Coordinate the movement of goods from manufacturer to distribution center
Five Competitive Priorities
- Cost
- Quality
- Delivery
- Flexibility
- Services
Supply Chain
Consists of all parties involved in procuring raw materials or products
Supply Chain Management (SCM)
Manages information flows among stages in the supply chain
Efficient and Effective Supply Chain Management's Effect on Porter's Five Forces
- Decrease: Buyer power, Threat of substitute Products or services, Threat of new entrants
- Increase: Supplier power
Basic Supply Chain Management Components
Plan, source, make, deliver, return
Activities of OM
- Forecasting
- Capacity Planning
- Scheduling
- Managing Inventory
- Assuring Quality
- Motivating and Training Employees
- Locating Facilities
Operations Management
Controls all the activities, systems and processes that convert resources into goods.
Transformation Process
The actual conversion of inputs into outputs.
Value-added Tax
Describes the difference between the cost of the inputs and the price value of the outputs.
Strategic Planning
Decisions that focuses on long range planning such as plant size, location, and type of process to be used.
Tactical Planning
Focuses on producing goods and services as efficiently as possible within the strategic plan
Three main links in the Supply Chain
1. Flow of materials from suppliers and their upstream suppliers at all levels.
2. The transformation of materials into semi-finished products
3. The distribution of products to customers and their downstream customers at all levels.
Bullwhip Effect
When distorted product dema [Show Less]