Question: How is inventory management helpful in the scope and structure of operations management?
Note: Given paragraphs are for reference purpose.
Structure and Scope of Operation
There are three aspects of operations management; structural, functional and environmental aspects. Structural aspect entails the transformation of products from their initial input form ton a form that is in line with the given specifications. Functional aspects are the network in the line of production. That is, the planning, control, improvements and implementation processes whose goal is to gain maximum profits, continuous operation and optimum performance. The environmental aspects involve the internal and external operations within which the business operates. It could be the community social and cultural concepts, technology, market and economics, and the government regulations (Wild, 2002).
Slack, Brandon-Jones and Johnston (2011) say that the process of management requires the manager to plan, set up workers, organize, control and direct. The scope of operations management needs the operation manager to make various decisions which are crucial in a business. One is on the making or the design of goods and services. The appearance and structure of a product is important because it determines its liking by the consumers, and the ultimate continuity of the business. The quality of the business processes needs to be managed well. The quality of the customer care services and the quality of products or services offered has to be high to ensure competitive advantage. The process of laying out of strategies is important in operations management. The plans that are decided upon need to be in line with the key objective of the business and has to put into consideration the consumers and the competition. A business ought to be strategically located to ensure maximum accessibility by the consumers. Another vital decision in operations management is human resources. There should be efficient human resource management to see to it that employees work as a team and are skilled enough to facilitate maximum production. The supply chain management should be considered in the scope of operations. There should be good communication and comprehension of all stages in the line of business. That is, the employees, suppliers, the regulatory board and the market need to work closely for the business to succeed.
How is inventory management helpful in the scope and structure of operations management?
References: Slack, N., Brandon-Jones, A., & Johnston, R. (2011). Essentials of operations management. Financial Times Prentice Hall.
Wild, R. (2002). Essentials of Operations Management. Cengage Learning EMEA.