The paper carries out gap analysis of operations management in contemporary organizations. The objective is to apply the concepts learned during the course on real-life situations. Both qualitative and quantitative methods have been used in this analysis to assess the shortcomings in current operations of several organizations. The sources for secondary research on the subject are journal articles and published books; while primary research has been carried out through interviews with key management figures in organizations.
Inventory Management – Ehrenthal, Honhon, & Woensel (2014) has discussed problems of inventory management within the online retail industry of US and cites examples of several organizations including Blue Nile. The authors mention that the online jewelry retailers face the dilemma of choosing the stocking option. The drive to maximize sales pushes the company to increase its production volume in order to maximize its profit through the sale of its products while it also needs to minimize inventory carrying costs to remain competitive. Faced with these dual conflicting objectives, there arises a problem of matching supply to demand (Ehrenthal, Honhon, & Woensel, 2014). This gives rise to the major problem for Blue Nile for adequate management of stocks.
This issue stems from the fact that Blue Nile also has a higher average production time than industry average and during high demand of jewelry, the company needs mobilization of large financial resources. Blue Nile does not implement just-in-time inventory management system, and analysis of the various costs associated with stocks show that finished products comprise of th...
... middle of paper ...
...Goodman Global, Blue Nile and Orange Leap Frozen Yogurt. The objective of the paper was to apply operations management concepts on real-life situations. It is concluded that these three companies lack in implementation of essential operations management principles in their production process. Recommendations are suggested for each one of the businesses and the benefits associated with the approaches are also discussed.
Ehrenthal, J., Honhon, D., & Woensel, T. (2014). Demand seasonality in retail inventory management. European Journal of Operational Research, 238(2), 527-539.
Lewis, M., & Slack, N. (2011). Operations Management: Critical Perspectives on Business. Ohio: Taylor and Francis.
Reynolds, D., Rahman, I., & Balinbin, W. (2013). Econometric modeling of the U.S. restaurant industry. International Journal of Hospitality Management, 3(4), 317-323.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- a) Nature of contemporary operations management in relation to its contribution to the achievement of the oranisation’s strategic objectives in terms of. Quality: Quality refers to the ability of a product or service to consistently meet or exceed customer requirements or expectations. Different customers will have different expectations, so a working definition of quality is customer-dependent (Product Quality - Boundless Open Textbook, n.d ). The manager of BMW was thinking what the customer want, they soon notice the digitalization and the associated technical, after that, when they are making the decision, they will consider the technical first.... [tags: Management, Marketing, Operations management]
944 words (2.7 pages)
- Operations management is a field of management concerned with controlling the process of production and designing supervising, organizing and planning in the contexts of production. Also it includes business operations in the production of goods and services. It has the responsibility for ensuring that business operations are benefit and efficient. In other words, organization successfully processes from inputs to outputs in an efficient way. It is concerned to manage the process that turns inputs like raw materials, energy and labor (human resources- staff or workers) into outputs such as goods and services.... [tags: Management, Operations management]
2310 words (6.6 pages)
- Operations Management is the term we use for the management of the resources necessary to produce and deliver the products and services required by customers. These resources include labor, materials and also capital equipment. Operations management include inventory management, quality control, production scheduling, and follow-up services. For example in clothing factories they transform raw materials, fabric, thread, and other resources into pants, shirts, skirts, and dresses in order for people to have clothing (Bethel University, 2011).... [tags: Management, Operations management, Customer]
720 words (2.1 pages)
- Definition and History Information Systems and Operations Management(ISOM) is mixture of business related sections of Informational Technology and the operational/management side of businesses. According to the George Mason University School of Business page ISOM is used to teach students how to design, improve, and how to manage business processes. One side of ISOM is Information Systems, which is the gathering and transmission of data. Meanwhile operations management deals with the design and the ability to control production processes and the establishment of business operation structures.... [tags: Management, Operations management]
1559 words (4.5 pages)
- Section 1 1.1 Operations Everything you see that is not in nature has been designed and produced by someone. It can be buildings, airplanes, clothes, furniture and even the food we eat is produced by people engaged in operations. So operations actually underpin most of human activity and shape the society which we live in. So the definition of operations is part of a business firms that is responsible for producing goods and services (Stevenson, 2015) 1.2 Operations Management Operations Management can be defined very simply as the management of work, or more accurately as the management of productive activity.... [tags: Management, Operations management]
954 words (2.7 pages)
- Table of Contents Page Introduction 3 Review of Perspective on Risk management in supply chains 3-5 Review of ERP systems in lean production 5-8 Safety Stock planning under casual demand forecasting 9 Bibliography and references 10 Introduction The following is the authors’ review of three articles from journals relating to the Operations Management Course. Each of the articles will be reviewed and analysed as to their relevance to a particular or number of subjects of the course.... [tags: Operations Management Essays]
2647 words (7.6 pages)
- Before enrolling in the operations management course this fall, my first impression of operations management was that this style of management deals with the processes and ideas managers use to help solve work issues. These work issues could range from measuring customer satisfaction to organizing a work room layout that would be most beneficial to the workers at a specific time. After further research on operations management, I was able to conclude that operations management entails much more than I had originally thought.... [tags: Management, Quality control, Automobile]
1129 words (3.2 pages)
- CONTEMPORY MANAGEMENT Examine the implications of globalization for Australian business and discuss whether Australia should become more integrated into the global economy Australia is an excellent object of study of globalization and its implications for business as its economic structure is at an unusual 'mid-way' point. New market opportunities, competitive threats and opportunities alike have been the key drivers of globalization since the 1980's. This essay analyzes a variety of topics to determine whether Australia should become more integrated into the global economy.... [tags: essays research papers]
2691 words (7.7 pages)
- Table of Contents i. Introduction. ii. Business process affected and how they would be affected. iii. Effects on Kudler's supply chain iv. Quality control tools and performance standard needed. v. Conclusion. vi. References. Introduction Kudler Fine Foods founded by Kathy Kudler in 1998 to provide ingredients needed for gourmet meals in one location. Kathy began the company with one store, which turned a profit in the first year. The company now consists of three stores in different cities of California.... [tags: Operations Management]
1415 words (4 pages)
- This paper intends to define operations management and analyze an ethics decision made by operations managers in the workplace or in a known organization. Production and Operations Management (POM) is about the transformation of production and operational inputs into outputs that, when distributed, meet the needs of customers. The process is often referred to as the Conversion Process. There are several different methods of handling the conversion or production process: Job, Batch, Flow and Group.... [tags: Business Operations Management]
752 words (2.1 pages)