- Defining Operations Management
- Organizational Decision Levels
- Key Terminology
- Critical Processes
- Measuring Productivity Levels
- Inventory Determination
- Inventory Policy Choices
- Inventory Policy in a Fixed-Order Quantity System
- Independent Versus Dependent Demand
- ABC Inventory Classification
- Vendor Managed Inventory (VMI)
- Challenges Facing the Modern Operations Manager
- Discussion Questions
This chapter is from the book
- What are some characteristics of operations management that make it a core business function?
- Explain the “transformation role” of operations management.
- Differentiate between the two categories of organizations.
- Cite examples of how operations management works in tandem with other business functions. How can poor operations management affect the entire supply chain?
- Define strategic decisions and tactical decisions. Which type of decision should an organization make first? Why is it important to start with one before the other?
- What is the difference between productivity and efficiency?
- What is the purpose of the production—or aggregate—plan?
- Detail the relationships among the critical planning processes.
- How should productivity be measured? Should all organizations/industries measure productivity the same way? Why or why not?
- How can carrying inventory protect against stockouts, balance supply/demand, and protect against uncertainty? What are the consequences of not carrying inventory?
- Explain how each inventory management system determines its order timing and its order quantity.
- How does the Pareto Law assist in ABC classification?
- VMI offers a vendor greater control over its products. How does VMI also help the customer?