Operations Management exam 2
9th edition
Nigel Slack and Alistair Brandon-Jones
1
,Index
- Chapter 13
- Chapter 14
- Supplement chapter 14
- Chapter 15
- Chapter 16
- Chapter 17
- Supplement chapter 17
- Chapter 18
2
,Chapter 13
Inventory = the accumulations of materials, customers or information (transformed
resources) as they flow through processes or networks
1. Physical inventory
2. Queues
3. Databases
Physical inventory (stock) = the accumulation of physical materials such as components,
parts, finished goods or physical (paper) information records
Queues = accumulations of customers
Physical as in a queueing line or people waiting.
Databases = stores for accumulations of digital information
Buffer inventory/safety inventory = inventory to compensate for the unexpected fluctuations
in supply and demand
Inventory management = managing these accumulations
Uneven flows = difference between the timing r the rate of supply and demand at any point
in a process or network
Supply > demand: inventory increases
Demand > supply: inventory decreases
In-flow = supply from previous processes
Out-flow = rate of demand from output process
3
, Reasons to avid inventories
Physical inventories Queues of customers Digital information in
databases
Cost - Ties up working - Primarily time-cost - Cost of set-up, access,
capital to the customer update and
- Could be high maintenance
administrative and
insurance cost
Space - Required storage - Requires areas for - Requires memory
space waiting or phone capacity
lines for held calls - May require secure
and/or special
environment
Quality - May deteriorate - May upset - Data may be corrupted
over time, become customers if they or lost or become
damaged or have to wait too obsolete
obsolete long
- May lose customers
Operational/ - May hide problems - May put undue - Databases need
organizational pressure on the constant management:
staff and so quality access control, updating
is compromised for and security
throughput
Benefits of physical inventory
1. Is an insurance against uncertainty
2. Can counteract a lack of flexibility
3. Allows operations to take advantage of short-term opportunities
4. Can be used to anticipate future demands
5. Can reduce overall costs
6. Can increase in value
7. Fills the processing ‘pipeline’
‘pipeline’ inventory = transformed resources cannot be moved instantaneously between the
point of supply and the point of demand
Benefits of queues of customers
1. Help balance capacity and demand
2. Enable prioritization
3. Gives customers time to chose
4. Enable efficient use of resources
Benefits of databases
1. Provide efficient multi-level access
2. Allow single data capture
3. Speed the process
4
9th edition
Nigel Slack and Alistair Brandon-Jones
1
,Index
- Chapter 13
- Chapter 14
- Supplement chapter 14
- Chapter 15
- Chapter 16
- Chapter 17
- Supplement chapter 17
- Chapter 18
2
,Chapter 13
Inventory = the accumulations of materials, customers or information (transformed
resources) as they flow through processes or networks
1. Physical inventory
2. Queues
3. Databases
Physical inventory (stock) = the accumulation of physical materials such as components,
parts, finished goods or physical (paper) information records
Queues = accumulations of customers
Physical as in a queueing line or people waiting.
Databases = stores for accumulations of digital information
Buffer inventory/safety inventory = inventory to compensate for the unexpected fluctuations
in supply and demand
Inventory management = managing these accumulations
Uneven flows = difference between the timing r the rate of supply and demand at any point
in a process or network
Supply > demand: inventory increases
Demand > supply: inventory decreases
In-flow = supply from previous processes
Out-flow = rate of demand from output process
3
, Reasons to avid inventories
Physical inventories Queues of customers Digital information in
databases
Cost - Ties up working - Primarily time-cost - Cost of set-up, access,
capital to the customer update and
- Could be high maintenance
administrative and
insurance cost
Space - Required storage - Requires areas for - Requires memory
space waiting or phone capacity
lines for held calls - May require secure
and/or special
environment
Quality - May deteriorate - May upset - Data may be corrupted
over time, become customers if they or lost or become
damaged or have to wait too obsolete
obsolete long
- May lose customers
Operational/ - May hide problems - May put undue - Databases need
organizational pressure on the constant management:
staff and so quality access control, updating
is compromised for and security
throughput
Benefits of physical inventory
1. Is an insurance against uncertainty
2. Can counteract a lack of flexibility
3. Allows operations to take advantage of short-term opportunities
4. Can be used to anticipate future demands
5. Can reduce overall costs
6. Can increase in value
7. Fills the processing ‘pipeline’
‘pipeline’ inventory = transformed resources cannot be moved instantaneously between the
point of supply and the point of demand
Benefits of queues of customers
1. Help balance capacity and demand
2. Enable prioritization
3. Gives customers time to chose
4. Enable efficient use of resources
Benefits of databases
1. Provide efficient multi-level access
2. Allow single data capture
3. Speed the process
4
