Operation Management: Key Factors and Considerations, Assignments of Production and Operations Management

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Operation Management When scheduling production one of the key factors to consider is demand forecast. An accurate prediction of the demand will avoid running into overstocking or stock-out scenarios. Another key factor is resource availability sch as raw material and labor (Jacobs, & Chase, 2018). For a smooth production process ensure all resources required are available in the facility. Other factors to consider are the season, backlog, and production capacity. The reputation of an organization is important because it develops loyalty in customers (Russell, & Taylor, 2019). For instance, if company A is known for fake products it will lose most of its consumers to an authentic company. Reputation is also the brand image of the company. A positive brand image gains recognition and a competitive edge in the market. Customers differ based on geographical location. For example, a customer from America may have different needs and preferences compared to that in the UK. Demographics such as age, income level, and gender do differentiate a customer. Thirdly a customer’s preference may bring difference, one customer prefer going with quality while another values quantity. Holding cost is the money spent on of managing and storing inventory (Jacobs, & Chase, 2018). The storing of an inventory brings about expenses such as insurance, warehousing, and security. It is important to manage these expenses as they will in turn reduce overall expenses contributing to higher profits in the company (Russell, & Taylor, 2019). Low holding cost also ensures less capital is tied up in inventory resulting to financial flexibility. My thoughts on the overall experience of the simulation program are it is valuable despite the initial frustrations. The skills learned have been instrumental in meeting my customer demand. For example, skills in bid management have enlightened me on optimizing costs and

References Jacobs, F. R., & Chase, R. B. (2018). Operations and supply chain management. McGraw-Hill. Russell, R. S., & Taylor, B. W. (2019). Operations and supply chain management. John Wiley & Sons.