Operation Management for a Competitive Advantage

Operations Management for Competitive Advantage

Atract

This paper will discuss and give an analysis and a detailed report of the explanation of how the approach to operations strategy will differ between the service side of Going and the manufacturing end, and what operations challenges are likely to be faced with each. Also, explanation of supply chain management and the three components associated, Demand Fulfillment, Demand Planning, Supply Planning. In addition recommendations and proposal are offered to aid Goings Company’s airline service business.

The supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer, the process of planning, controlling and implementing. Heizer & Render (2012 p.337) stated, “ As firms strive to increase their competitiveness via product customization, high quality, cost reductions, and speed to market, added emphasis is placed on the supply chain.” The operations of the supply chain, the intentions to satisfy the customer’s requirements as efficiently as possible. Supply chain management, Heizer& Render ( 2012 p. 334 ) stated, “involves transportation vendors, credit and cash transfers, suppliers, distributors, accounts payable and receivable, warehousing and inventory, order fulfillment and sharing customer, forecasting, and production information”. Coordinating and integrating these flows both within and among companies are key, objective, to build a chain of suppliers that focuses on maximizing value to the ultimate customer. The ultimate goal of an effective supply chain management system is to reduce the inventory, with the assumption that products are made available when needed. Effective supply chain managements are gaining significant competitive advantage over their competitors because of way they are configuring and managing...