Week Nine

1. Define the term operations management

Operations management refers to the background or operational tasks which turn inputs into outputs. 

2. Explain operations management’s role in business

Operations managers have a number of roles. Some include the forecasting of products etc in order to reach the demand of consumers, they make sure that there is enough inputs for production to meet demand, quality control is also a major role as is making the cost of the goods sold lower so the firm is more profitable (even though this is a more strategic role)

3. Describe the correlation between operations management and information technology

Visibility is increased as dead stock or too much inventory is reduced due to better integrated systems. This occurs as they can see the purchases in "real time".

4. Explain supply chain management and its role in a business

Supply chain management is the series of steps that goods or services go through, from upstream to downstream. Thus it is the flow of goods, information and finances. When there is a good supply chain, it creates a barrier to entry for other organisations trying to get into the market. It also allows organisations to supply demand more accurately. Below is a link explaining the supply chain in more detail.

http://www.conveyorss.com/supply-chain/

It is important for firms to manage their supply chains as it allows firms to keep track of their inventory.

5. List and describe the five components of a typical supply chain

- Supplier: provides the manufactuer with goods and services in order for a product to be made. 
- Manufacturer: makes products for a businesses.
- Distributor: usually a company (but can be a person) who delivers goods to a retailer such as David Jones. 
- Retailer: The company who sells the product to consumers e.g. David Jones. 
- Customer: A person who consumes a product after purchase from the retailer. 

6. Define the relationship between information technology and the supply chain

IT allows organisations to properly forecast for demand, provides greater visibility so organisations are able to see the stock present and can automatically resupply retailers due to "real time" purchases, organisations can see what times of the year have an increase or decrease in the demand for a product and can also reduce industry spikes. 

With the technology which allows an organisation to do this, they can gain a competitve advantage as Walmart has in the U.S. This is because of their supply chain management as their IT systems automatically replenish what has recently been purchased .