operations and supply chain managment

Economies of scale -  refers to the reductions in unit cost achieved by producing a large volume of a product. Economies of scale have a number of sources including the ability to spread fixed costs over a large volume, and the ability of large firms to employ increasingly specialized equipment or personnel Which of the following is an infrastructure difference between countries that calls for product customization? Difference in consumer electrical systems across continents global standardization strategy - focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies. Their strategic goal is to pursue a low-cost strategy on a global scale. This strategy makes sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal. High transportation costs, the threat of tariff barriers, and potential problems with local ma...

revenue management  the process of allocating the right type of capacity to the right type of customer at the right price and time  to maximize revenue or yield  to influence market demand  to making demand more predictable  differential pricing  changing different prices to different customers  dynamic pricing  charging different prices over time  agregatte operations plan  product group or board category ( aggregation)  specify the optimal combination of  production rate ( units completed per unit of time  workforce level ( number of workers)  inventory on hand ( inventory carried from previous period)  stages of aggregate production  chase strategy  level strategy  production strategy 1 - chase strategy  match the production rate by hiring and laying off employees  must have a pool of easily trained applicants to draw on  production planning st...

safety stock : amount of inventory carried  in addition to expected demand and supplies  many other inventory models  price break models ( quantity discount model  abc model  single period model ( flu shots)  fixed order quantity system ( every time you buy something is the same amount)  fixed time period system  stock outs: back order/lost sale ( 3x. every 99th person gets it )  RFID  automates the supply chain  inventory management - goods automatically counted and logged as they enter the supply warehouse  manufacturing - assembly instructions encoded on RFID tag provide information to computer controlled assembly devices  distribution center - shipment leaving DC automatically updates ERP to trigger a replenishment order and notify customer for delivery tracking  retail  store - no check out lines as scanners link RFID tagged goods in shopping cart with buyer credit card 

uncertainty and safety stock  safety stock  amount of inventory carried in addition to expected demand and supplies 

ECQ Model  total annual cost = annual purchase cost and + annual ordering cost + annual holding cost Total annual cost = (annual demand)(cost per unit) + Annual Demand/ order quantity

four types of inventory  raw materials, components and supplies  work in process  finished goods  repair and replacement parts  functions of inventory  the primary functions of inventory are to  buffer from uncertainty in the marketplace and  decouple dependencies in the supply chain  to allow flexibility in production scheduling  to take advantage of economic purchase-order size  inventory costs  inventory stacks of your money sitting there without paying you anything  inventory is often not very liquid  average cost of inventory in the United States is 30-35% of its value  obselence, insurance  types of inventory costs  holding ( or carrying) costs  costs for storage, handling, insurance, and so on  Setup ( or production change) costs  costs for arranging specific equiptment setups, and so on  ordering costs  costs of placing an order...