Category Archives: Operation Management

MT435-Unit 10: Inventory Management

Unit 10: Inventory Management.

Research the following topics related to Inventory Management:

  1. Demand
  2. Inventory control systems
  3. EOQ
  4. Role of inventory management
  5. Reorder point

Select three of the topics listed and compose three paragraphs describing the topics, one paragraph per selected topic, based on the course material and additional research you conduct online.

 

Operation Management Journal

 

Inventory Control Systems

Inventory control systems refer to computerized stock control systems used by businesses to manage inventory. Inventory control systems enable businesses to accomplish a number of objectives in relation to stock control (DuBrin, 2011). These objectives include tracking, shipping, purchasing, reordering, storage, warehousing, and among other objectives. Computers that utilize specialized software and hardware components monitor modern inventory control systems. In various businesses, the activities involved in accomplishing the various objectives are often contained within different subsystems. However, the various functions necessary to accomplish the objectives occur in sequence in order to achieve a robust stock control system.

EOQ

Economic order quantity (EOQ) refers to the quantity of materials or purchases of inventory that a business should make with each order in order to keep the total costs of the inventory minimal (DuBrin, 2011). In adding inventory, the business must ensure that various costs associated with inventory remain minimal. Such costs include order costs, shortage costs, and the stock holding costs. The EOQ model estimates optimal inventory levels in businesses that experience constant demand for their products throughout the year. Businesses use EOQ to monitor inventory levels and make purchases whenever inventory level falls to a specific level, also known as the reorder point.

Role of inventory management

Inventory management is of great significance to the business. Inventory management helps businesses to make items required available at all times. As such, customers are able to acquire a variety of items in a timely manner. Inventory management enables companies to maintain buffer stocks to cushion for various uncertainties in future. Often, replenishment of goods may take more time due to various uncertainties such as supplier lead times, quality issues, and transportation challenges (Wild, 2007). Inventory management helps keep the stock holding costs minimum and thus a reduction in the overall operating costs of the business.

 

References

DuBrin, A. J. (2011). Essentials if management. Boston, MA: Cengage Learning.

Wild, T. (2007). Best practice in inventory management. United Kingdom, UK: Routledge.

 

Related content :Global Operations Management/MGMT415

Human Resource Management and Project Management Paper

Human Resource Management and Project Management Paper

Professional service organizations help professionals maintain their careers via continuous learning, provide
social and business networking opportunities, promote leadership and mentorship within the field of the
profession, and provide standardization for the profession. Additionally, the

 

Operation Management

Name

Institutional Affiliatio

The Society for Human Resource Management (SHRM) is considered the largest HR membership organization that is concerned with human resource management. SHRM outlines a number of human resource management principles which concerned organizations and individuals are expected to observe. On the other hand, operations management is a field of management that is concerned with achieving efficiency and effectiveness in the production process through the redesigning of the various business operations. The core objective in operations management is to ensure that resources are utilized efficiently in meeting customer needs.

The first human resource management principle is professional responsibility. This principle advocates for all HR professionals to act in a professional manner. For example, HR professionals should avoid conflicts of interest, prioritize the interest of clients, and act in accordance with the law. Additionally, they should always partake in organizational activities that promote its value. The second principle is professional development. Professional development entails the need for HR professionals to continuously improve their knowledge and skills in relation to the profession as well as the organization. Ethical leadership is another important principle. This requires that HR professionals should act in an ethical manner. Their individual behavior should act as the standard for which other individuals in the organization can compare their behavior to and emulate (“SHRM,” 2014).

The fourth human resource management principle is fairness and justice. All HR professionals are expected to accord respect to every individual working in their organization. In addition, they are expected to treat others with dignity and to accord equal opportunity and treatment to all employees. The fifth principle is conflicts of interest. This principle prevents HR professionals from using their position for personal gain. The last principle is the use of information. This principle guides HR professionals in the way they are supposed to handle information in their organizations. Dissemination of information should be conducted ethically and through outlined channels of communication (“SHRM,” 2014).

There are a number of operations management principles which compare with the aforementioned human resource management principles. The principle of fundamentals in operations management requires that the management and employees stick to the routine procedures of the organization such as keeping accurate records and maintaining discipline. This is similar to principle of professional development in HR management. The principle of accountability in operations management requires that managers and employees take responsibility of their actions (Russell & Taylor, 2014). This principle is similar to the principle of ethical leadership in HR management. The principle of managed passion is also important in operations management. This principle requires that top management implement measures to motivate or create drive for work among employees. This can be achieved through employees being accorded the opportunity to grow their careers through promotions or learning. This relates to the principle of professional development in HR management. The principle of humility in operations management is similar to fairness and justice principle in HR management. This principle calls for equal treatment of employees (“Project Management Certificate Program,” 2015).

The Project Management Institute is mainly concerned in program, project and portfolio management. The first project management principle is the project management impact. This principle seeks to maximize the benefits of a particular project to the society. This principle is similar to the principle of success in operations management. However, in operations management the focus is delighting customers while in project management the focus is giving maximum benefits to society. The second principle is professionalism. This entails acting in accountable and ethical manner. Accountability relates to being responsible for one’s actions. In operations management, the principle of accountability is also significant to managers and employees. This principle enhances ethical conduct. The third principle in project management is volunteerism. This principle is critical in project management because it often involves charitable activities to the community and the disadvantaged. Volunteering enables the Project Management Institute to achieve its goals and objectives. In operations management, volunteerism can be compared to corporate social responsibility (“PMI,” 2015).

Read also: Operation Management

The fourth principle is community. In project management, it is important for all members of the project management community to come together so as to enhance mutual growth. This principle is not common in operations management. The fifth principle is engagement which involves seeking diverse viewpoints before engaging in particular projects. This is with the aim of maximizing the benefits to be derived from a particular project. The sixth principle involves honesty and responsibility. This involves conducting operations in a transparent way. Lastly, respect and fairness is important in project management. This principle is also found in operations management (“PMI,” 2015).

Professional service organizations play a major role in standardizing professions. They are responsible for developing the code of conduct in organizations which guide the entire professional fraternity. They are also important in guiding the behavior of the various professionals in the industry. The main focus of these organizations is to ensure that members in a particular profession adhere to established ethical codes and to take corrective action in case members go against the established industry standards. During implementation of projects, professional service organizations play a critical role in ensuring that all established standards are adhered.

References

Project Management Certificate Program. (2015). Retrieved from: http://www.kaplanfinancial.com/pdc/certificate-programs/project-management

Project Management Institute (PMI). (2015). Core Values. Retrieved from: http://www.pmi.org/About-Us/About-Us-Core-Values.aspx

Russell, R., & Taylor, B. (2014). Operations and supply chain management (Eighth ed.). Hoboken, NJ: John Wiley & Sons.

Society for Human Resource Management (SHRM). (2014). Code of ethical and professional      standards in human resource. Retrieved from: http://schrpup.shrm.org/schrp-code-         ethical-and-professional-standards-human-resource