Productivity in Operation Management

Productivity in operation management is the process by which an organization effectively uses its resources in the production of goods and services while making profits.. Competitiveness determines how the organization is effective in the market in comparison to other organizations that offer the same goods and services. Strategies are the factors shapes the plans that determine the direction by which an organization follows in pursuing its objectives (Scribd).

Environmental scanning and industry analysis is the consideration of the events and trends which presents threats and opportunities for the organization. It includes the monitoring of the competitors activities; customer’s needs dynamics economic, political and environmental issues. These factors are the determinants of the direction and position of the company (Scribd).

The service design is based on the product design process which needs to re-operationally the resources that develop the profitability agenda. Designing of product and services help the company to interact with the worker, thus enhancing production and offering of quality goods and services, which in turn customers to buying the products (Scribd).

Supply chain specifies the function in which the supply chain achieves its goals. It aligns itself with the strategy of the business creating the value for organization when executed well. Supply chain establishes the manner in which the business relates with supplies and policies related to the customer relationships and their sustainability (Scribd).

50 TVs / day 7 days- 100 lots

Order preparation-1500

Carrying cost per TV =250/year

Order period = 100/50. Total cost/order period=tp. Average inventory=Q/2 hence average cost=Q/2*QD    order cost /period =C

1 economic order quantity


Demand for the year=50*365/50*1500+50/2*250=625+54200=$54825

2 Average numbers of TVs at hand

This is the daily sales divided by 2, hence50/2=25

3 Orders period for 1 year

The order period is equal to the number of lot divided by the number of sales per day.

Order period= 100/50=2days per week, thus ordering period for one year is 2*52=104 days.

4Ttotal cost of ordering and carrying

Cost of ordering and carrying is $1500. Thus for 1 year the cost will be;

Cost of 1 day * 104 ordering days =104*$1500



JIT inventory system control the flow of work through bringing of material and sending out goods upon demand providing what the customers’ needs without having surplus. The advantage of JIT is that through minimization of inventories, there is a releas3e of resources to employ in other area of the company. More space is created without expansion of the store. The disadvantage of JIT is that it is complex as the flow of work of the company must be re-evaluated from the intake of the raw material to the final output. The relationship of the supply chain requires retooling which should have many suppliers and the locations must be near.

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Waiting line system is the source of the company’s customers and the process of offering services to these customers. The number of customers determine the waiting time. The waiting time is managed through the determinations of the number of queues, servers and the arrangement of the servers, poor management of waiting line systems can lead to losing customers as they opt for other alternatives (Hiray, 2008).



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