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Waiting Lines/Inventory Management
Waiting lines derive from demand exceeding capacity over a given period of time. There are six characteristics of lines - the source population; the way in which customers arrive at the service facility; the physical line itself; the way customers are selected from the line; the characteristics of the service facility itself; and the condition of the customers when they exit the system. We manage these characteristics by analyzing the line and how customers move through it. This is done using statistical methods to determine the line that best balances operational efficiency and customer experience.
Restaurants typically handle lines by providing a bar area at which customers can wait comfortably for a table, generating additional revenue for the restaurant as a side effect. Excess capacity can be bad, particularly for businesses with high fixed costs that require constant revenue streams to meet. We define capacity as the greatest potential output that can be achieved by a system.
2) Inventories are non-earning assets in that the goods have been paid for (becoming assets) but are not yet generating income for the company. When a company carries an inventory, that is a part of their business that is not yet earning money. While each individual component of the inventory is expected to earn eventually, the inventory as a whole is a relatively permanent fixture on the balance sheet and as such never turns into earnings.
The objectives of inventory control are to balance the needs of the operation and the desire of management to keep inventory levels as low as possible. Inventory control allows the firm to maintain operational continuity devoid of inventory-related work stoppages. However, proper inventory control also limits the amount of inventory on the balance sheet, increasingly operational efficiency.
The requirements for effective inventory management are measurement, scheduling, sales projections, and supply chain management. Measurement allows management to understand what inventories are on hand at all times. Projections allow management to estimate the upcoming inventory needs. Based on this, they must schedule inventory deliveries to match the upcoming requirements. Supply chain management allows management to work with suppliers to ensure that their inventory requirements are met.
52). The researcher handles or controls the items differently. It is a form of Pareto analysis where items such as customers, documents, activities, inventory items, sales territories grouped into three categories namely a, B, and C. In order of their estimated importance. Consequently, 'A' items are very important, 'B' items are important, and 'C' items are marginally important. The organization gives 'A' rating to their best customers since they
21). Conversely, Michman and Greco (1999) point out that, "Some department stores have failed because many have provided a stale and unexciting physical environment to customers. Another reason has been that some department stores have been unable to implement effective inventory management systems, thereby lowering costs to either match or at least approach the prices offered by discounters" (p. 4). Effectively managing inventory also requires the ability to monitor current
In fact, the very face of business has undergone great metamorphosis with the technology that has been applied to the labeling of merchandise. Labeling whether for the purpose of fighting shoplifting crimes or for the more efficient tracking of merchandise from point of production to point of sales has become the very nerve center of today's business operations and processes. RFID technology will soon enable customers to breeze throughout
' For example: a low-inventory method requires careful monitoring of past behavior of consumers during key periods of high use, and this market research and data tracking comes at a price, if it is done in a through and effective manner (Supply meets demand, 2009, Accenture). Also, computing is such a necessity for some users, even waiting one day for the latest technology may be unacceptable. Dell relies upon almost
Inventory Process Improvement This work is focused on "Inventory Process Improvement" and will be comprised of Part One, or the Executive Statement to this work, Part Two which will consist of process flow charts, procedures, or policy statements which articulate the business requirements in terms of specific process or business development needs, Part Three which will include software and hardware recommendations for the information technology solution and Part Four which will
Integrated Management Framework The notion of Operations Management (OM) resembles that of a tree with various branches attached to it; although each of the branches represents a separate icon, their roots are linked. Here, the various branches stand for Logistics, Purchasing, Supply Chain Management (SCM), Management Information Systems (MIS), Accounting, Engineering and Marketing. All have a different persona but play a significant role in the implementation of Operations Management and