Exam One Study Guide - 10.13.14 Operations and Production...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
10.13.14 Operations and Production Management Exam One Study Guide Effective: Make sure you are giving what the market wants Efficient: Using resources the best we can Operations Management is concerned with operating, improving, and designing processes/operations/systems that transform inputs into outputs What is a supply chain? Consists of all stages involved in fulfilling a customer request Supply web is a more complex version of a supply chain Measuring performance: o Inventory turnover = (COGS/Avg. aggregate inventory value) HIGHER INVENTORY TURNOVER = MORE EFFICIENT o Weeks of supply = (Avg. aggregate inventory/COGS)*52 weeks LOWER WEEKS OF SUPPLY = MORE EFFICIENT Hau Lee’s Uncertainty Framework Demand Uncertainty Low (functional) High (Innovative) Efficient Responsive Risk-Hedging Agile Bullwhip Effect: The magnification of variability in orders in the supply chain Increases costs at each stage of supply chain Reduces overall supply chain profitability by making it more expensive Lead time is one cause of this o Orders take time until they are received (creates panic) o Can’t get rid of bullwhip effect because we can’t reduce the lead time to zero Can dampen bullwhip effect o Reduce demand fluctuation (everyday low prices) o Faster recognition of demand change o Reduce lead time Supply Uncertainty Low (Stable) High (Evolving)
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
10.13.14
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern