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Summary Operations & Supply Chain Management

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Summary Operations and Supply Chain Management Jacobs and Chase 14th Edition Chapter 1, 2, 5, 8, 9, 14, 16, 17, 19, 20, 21, 23

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  • February 23, 2017
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  • 2016/2017
  • Summary

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Summary Operations and Supply Chain Management

Chapter 1: Introduction
Operations and Supply Chain Management (OSCM)
The design, operation, and improvement of the systems that create and deliver the firm’s primary
products and services.

 Success involves the clever integration of a great operations-related strategy, processes that
deliver the products and services, and analytics that support the ongoing decisions needed to
manage them.

 Think of the supply network as a pipeline through which material and information flow.

Operations – refers to manufacturing and service processes that are used to transform the
resources employed by a firm into products desired by customers.

Supply chain – refers to processes that move information and material to and from the
manufacturing and service processes of the firm.

Process – One or more activities that transform inputs into outputs.

The following describes the work involved in each type of process:

1. Planning: consists of the processes needed to operate an existing supply chain strategically.
2. Sourcing: involves the selection of suppliers that will deliver the goods and services needed to
create the firm’s product.
3. Making: where the product is produced or the service is provided.
4. Delivering: also referred to as logistic processes.
5. Returning: involves the processes for receiving worn-out, defective, and excess products back
from customers and support for customers who have problems with delivered product.

There are five essential differences between services and good, the five characteristics of services:

1. Intangible process
2. Requires some degree of interaction with the customer to be a service
3. Heterogeneous (varying day to day between the customer and the servers)
4. Perishable and time dependent
5. Specification of a services can be defined as a package of features (supporting facility,
facilitating goods, explicit service, implicit service)

The Goods-Services Continuum
Almost any product is a combination of goods and services:

Pure Goods Core goods Core services Pure services
Food products Appliances Hotels Teaching
Chemicals Data storage systems Airlines Medical advice
Book publishing Automobiles Internet providers Financial consulting

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