Operations Management
   What is operations?
      The part of a business organization that is 
       responsible for producing goods or services
   How can we define operations 
     management?
      The management of systems or processes that 
       create goods and/or provide services
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     Good or Service?
      Goods are physical items that include raw materials, parts, 
      subassemblies, and final products.
        • Automobile
        • Computer
        • Oven
        • Shampoo
    Services are activities that provide some combination of time, location, 
    form or psychological value.
      • Air travel
      • Education
      • Haircut
      • Legal counsel
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      Supply & Demand
              Operations & 
            Operations &             Sales & Marketing
              Supply Chains        Sales & Marketing
            Supply Chains
                                                                 Wasteful
                                                               Wasteful
                 Supply                 Demand                   Costly
                 Supply                 Demand
                                >                              Costly
                                >
                                                             Opportunity Loss
                                                           Opportunity Loss
                 Supply                 Demand               Customer 
                 Supply                 Demand             Customer 
                                <                            Dissatisfaction
                                <                          Dissatisfaction
                 Supply                 Demand                     Ideal
                 Supply         = Demand                         Ideal
                                =
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     Supply Chain
      Supply Chain – a sequence of activities and 
      organizations involved in producing and delivering 
      a good or service
     Suppliers’       Direct       Producer      Distributor      Final
    Suppliers’       Direct                                     Final
      suppliers      suppliers    Producer      Distributor    Customers
    suppliers      suppliers                                  Customers
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    Supply Chain for Bread
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