Operations Management In The Supply Chain: Sustainability and Resilience:
2024 Release
by Roger Schroeder
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, Chapter 1
The Operations Function
Teaching Notes
This Chapter Is Aimed At Providing An Overall Framework For The Textbook And The Field Of Operations
And Supply Chain Management. A New Section Is Added On The Role Of Operations And Supply Chain
Management In The Economy And In The Firm. The Chapter Provides A Framework That Serves As A
Beneficial Way Of Organizing Students' Understanding Of Five Major Operations And Supply Chain
Management Decision Types: Process, Quality, Capacity, Inventory And Supply Chain. The Cross-
Functional View Of Operations Management (OM) Is Also Introduced In This Chapter To Provide
Relevance For The Course In Particular For Non-Majors. When Operations Management Is Related To
Marketing And Finance As A Major Business Function, All Students Readily Understand The Role Of
Operations And Supply Chain In Business.
In Teaching This Chapter, We Highlight The Important Role That OM And Supply Chains Play In The
Economy And The Firm. The Five Decision Areas In Operations And Supply Chain And The Importance Of
Cross- Functional Decision Making Are Emphasized. We Also Spend Some Time Discussing The
Importance Of Both Services And Manufacturing, And How Business Operations Are Managed Within
Larger, Multi-Organization Supply Chains. We Introduce The Concept Of Contingencies And Explain That
The Textbook Includes Information On When Particular OM Activities Are „Best Practices’ And When
They Are Not. We Also Define Analytics And Explain How Analytics Is Used In Operations And Supply
Chain Management Decisions.
Finally, We Illustrate Major OM And Supply Chain Decisions Using The Pizza U.S.A. Example, As Well As
In Other Types Of Businesses. Students May Find The Typical Jobs In OM And Supply Chain From
Monster.Com (In A Chapter 1 Operations Leader Box).
The Learning Enrichment Section At The End Of The Chapter Provides Videos And/Or Websites That
Students Can Access Outside Of Class Or Instructors Can Use In Class. These Resources Help Bring The
Chapter Materials To Life, And Tap Into Student Interest.
Learning Enrichment (For Self-Study Or Instructor Assignments) Answers
To Questions
1. Operations And Supply Chain Management Is Ubiquitous, That Is Present In Every Organization. Daily,
We Come In Contact With Various Goods And Services Produced By The Transformation Of Inputs To
Outputs Under The Control Of Operations Managers. Operations And Supply Chain Management Is A
Core Business Function Along With Marketing And Finance. All Decisions Are Cross-Functional In Nature.
You Will Be Interacting With The Operations Function No Matter What Career You Choose. Much Of
What Is Learned Related To Operations And Supply Chain Management Can Be Applied To Other
Functions.
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,2. Operations Management Is A Broader Term Than Production Management, Encompassing Service
Organizations As Well As Manufacturing. Operations Management Is Also A More Recent Term
Replacing The Earlier Term Production Management.
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, 3. The Difference Between Operations And Supply Chain Management Is Operations Management
Focuses On Decisions To Manage The Transformation Process That Converts Inputs Into Desired
Finished Goods Or Services Within A Single Firm. Operations Management Occurs Within And Across
Multiple Facilities In An Organization. Supply Chain Management Relates To The Network Of
Manufacturing And Service Operations That Supply Each Other From Raw Materials Through
Manufacturing To The Ultimate Customer. The Supply Chain Consists Of The Flows Of Materials, Money,
And Information Along The Entire Chain Of Sourcing, Production, And Distribution. The Supply Chain
Links The Operations Of Many Different Organizations In Order To Satisfy Customer Needs.
4. Responsibilities Differ Among Operations, Marketing And Finance Managers. A Marketing Manager
Identifies Demand For Goods Or Services And Develops The Market, Whereas The Operations Manager
Assures Supply Of The Products Or Services. The Finance Manager Acquires And Allocates The Capital
Resources For The Other Functions. Similarities In The Three Functions Include Managerial Decision
Making And Shared Organizational Goals.
5. Operations, Marketing, And Finance Are Primary Functions Of The Organization. Human Resources,
Information Systems, And Accounting Are Supporting Functions That Provide Resources And Services
For The Three Primary Functions. The Operations Manager Applies Resources, Analysis And Information
Provided By Supporting Functions And Integrates Them Into Decision Making. The Focus Of The
Operations Manager Is On Decision Making Rather Than On Analytic Methods.
6. A. The Purpose Of A College Library Is To Make Information Available To Students And Faculty For
Research And Studying. The Output Is The Bundle Of Services Provided Along With Facilitating Goods:
Buildings, Computers, Books, Catalogs And Indices.
Process -- Facility Layout Considering Book Stacks, Reference Rooms, Computer Access On-Site And
From Off- Site, Degree Of Computer Use And Procedures For Accessing And Circulating Information.
They Must Not Only Select The Appropriate Process, But Manage The Flow Of Users And Information.
Quality -- Standards Of The College Library Profession Are Adopted; Quality Measures Include: Ratio Of
Consulting Staff Hours To Students, Rate Of New Book And Other Material Purchases, Number Of
Complaints, Student Satisfaction.
Capacity -- Forecasting Of Library User Needs Contributes To Decisions On Building Size, Volume Of
Space For Study And Materials, Print Acquisitions, Computer Work Stations, Staff Hiring And Scheduling
Of Shifts.
Inventory -- Decisions Concerning The Number Of Books, Periodicals, Etc. To Stock.
Supply Chain – Decisions About Sourcing Of Materials And Information. Also, Decisions Are Made About
Best To Distribute Printed And Online Materials, Along With Moving Materials And Information Into
The Library.
B. The Purpose Of A Hotel Is To Attract And Satisfy Conventioneers And Overnight Guests. The Output Is
The Bundle Of Services And Goods Provided: Overnight Accommodations, Maid Service, Room Service,
Television, Pool, Bar, Coffee Shop.
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