Differences Between Replenishment and Requirements Philosophies

that comprises production planning and control, inventory management, and operations control. Production management includes all management activities spanning selection. Designing, operating, controlling and updating production system. Operation Management is a broad sum of activities that go into turning raw material into final, finished product. One may feel that production management is a subset of operations management, but production management in itself is a broad subject that comprises production planning and control, inventory management, and operations control. Production management includes all management activities spanning selection. Designing, operating, controlling and updating production system.

What is the different between operations management and supply chain management?

Operations management is primary focused on the inputs and processes required to produce a service or product for a customer. On the other hand, managers over supply chains are tasked with the responsibility of getting the goods or materials to the place of production. A high emphasis on the supply chain managers is getting those raw materials to the operation at the precise time that the materials will be converted by the operation. If the delivery timing is off, an operation will face either shortages or increased inventories.

Chapter 2

Define the following terms in your own words: Mission of operations, order winner, order qualifier, and distinctive competence.

1. Mission of operations provides the objective and vision to how success will be achieved. This must take into account the variables of cost, quality, delivery, and flexibility that the organization must anticipate.

2. Order winner is an objective of an organization to establish the primary concern of a customer segment. For example, the text illustrates that Wal-Mart places

“cost” at the top of the order as determined by their customer base.

3. Order qualifier establishes what I would consider the “price of entry” for which a customer will consider within their options. For example, a customer may expect their bank to provide various services such as free bill pay. However, the interest paid on their IRA account will determine if the customer will choose a particular bank.

4. Distinctive competence is the competitive advantage an operation has over others in the industry. It may be a unique experience or a highly specialized service that will drive the customer demand.