Question

For each topic (with bullet point) please use one sentence to describe or define the topic. I just want to know you understand the concept, can be as simple as a definition.

Forward and Backward Pass

Inventory Management

Concepts, Motivation and Challenges in Inventory Management

ABC, EOQ, Newsvendor Models; Assumption and Applications

Supply Chain Management

Concepts, Motivation and Challenges in Supply Chain Management

Responsive vs Efficient Supply Chain

Information Systems in Supply Chain Management

Bullwhip Effect, Outsourcing, Supplier Relationship

What is the most important function in Operations management? Relationships- Why is this statement true?

Answer 1

- Forward and backward pass- These are concepts of critical path in time management. Forward pass determines the early or late start and backward pass an early or late finish of any activity. Calculating an activity is done by moving forward through a diagram in forward pass and moving backward in a backward pass.

- Inventory management- Inventory is the stock of equipments, raw materials and finished goods and inventory management refers to the process of managing the stock by ordering it on time, story it with safety and dispatching it for use.

- Concept of inventory- The goods held in stock between the process from production to sales is the inventory. It comprises of three forms namely raw materials, work in progress and finished goods.

Motives of inventory management- These are the reasons for holding the inventories by firms. There are three motives for it namely transaction motive- where the inventory is held to avoid bottleneck situations between productions and sales, precautionary motive- where inventory is held for precaution to face any unexpected situation like decrease in supply of raw materials or increase in demand of finished goods and speculative motive- where inventory is held to avoid a situation where prices may go up suddenly and buying raw material at that price would be loss for the company.

Challenges of inventory management:Out of stock on items with more demand, holding up of cash in purchase and stocking of inventory, determining obsolete inventory, keeping track of inventory and numbering them, shipping of wrong products, protecting goods from wear tear and damages.

ABC model- It is the categorisation of inventory into most important (A category), less important (B category) and least important (C Category) depending on its usage annually.

EOQ model- assumption- Demand of customer is constant and orders are relaoded instantly with no lead time.

This model is used to optimize the costs of ordering and holding inventory. It is calculated by assuming that demand and lead time uncertainity does not prevail.

Newsvendor model- assumptions- all goods are perisable and unsaleable after a short time and will be totally saleable for that short time.

It is a single period inventory control model that optimizes the quantity that is ordered by keeping the understock and overstock costs at minimum