Create an account
ratio of quality to price paid. competitive "happiness" is being able to increase quality and reduce price while maintaining or improving profit margins. (this is a way that operations can directly increase customer retention and gain market share.)
operations and supply management
design, operation, and improvement of the systems that create and deliver the firm's primary products and services
operations and supply strategy
setting broad policies and plans for using the resources of a firm to best support the firm's long term competitive strategy
occurs when a firm seeks to match what a competitor is doing by adding new features, services, or technologies to existing activities. This often creates problems if certain trade-offs need to be made.
a dimension that differentiates the products or services of one firm from those of another
a diagram that shows how a company's strategy is delivered through a set of supporting activities
strategic capacity planning
determining the overall capacity level of capital-intensive resources that best supports the company's long-range competitive strategy
best operating level
the level of capacity for which the process was designed and the volume of output at which average unit cost is minimized
can be operationalized through the plants-within-plants concept, where a plant has several suborganizations specialized for different products-even though they are under the same roof. this permits finding the best operating level for each suborganization
economies of scope
exist when multiple products can be produced at a lower cost in combination than they can be separately
inventory turnover and weeks of supply
measures of supply chain efficiency that are mathematically the inverse of one another
cost of goods sold
the annual cost for a company to produce the goods or services provided to customers
average aggregate inventory value
the total value of all items held in inventory for the firm valued at cost
weeks of supply
a measure of how many weeks' worth of inventory is in the system at a particular point in time
the variability in demand is magnified as we move from the customer to the producer in the supply chain
stapled that people buy in a wide range of retail outlets, such as grocery stores and gas stations
products such as fashionable clothes and personal computers that typically have a life cycle of just a few months
service supply chain
a term that stresses the unique role of the customer as a supplier of input and recipient of output for a service firm
moving some a firm's internal activities and decision responsibility to outside providers
functions that support the complete cycle of material flow: from the purchase and internal control of production materials; to the planning and control of work-in-processes; to the purchasing, shipping, and distribution of the finished product
design for logistics
this concept involves consideration of material procurement and distribution costs during the product design phase
the ability of a company to deliver highly customized products and services to different customers around the world
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