Question

A manager is concerned that there isn’t enough time spent on production and too much time spent on setups. The manager decides to double all production batch sizes. This change has no impact on demand. What impact will this likely have on the average inventory in the process?.

Answer 1

It will result in an increase in average inventory as larger batches require more time to be completed.

What is Operations Management?

Operations management (OM) is the management of business practices within an institution to achieve the highest level of efficiency possible. It is involved with converting materials and labor as efficiently as feasible into goods and services in order to maximize an institution's profit.

What are the 3 types of operations management?

• Product design and product.
• Planning and managing of manufacturing facilities.
• Purchasing/procurement.
• Forecasting.
• Capability planning.
• Inventory control.
• Quality control.
• Delivery to clients.

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