Convenience

Operations Management
Operations management is somewhat less mathematical
and statistically sophisticated than management science, and it can be applied more
directly to managerial situations. Indeed, we can think of
operations management
as a
form of applied management science. Operations management techniques are generally
concerned with helping the organization produce its products or services more efficiently
and can be applied to a wide range of problems.
For example, Unilever and Home Depot each use operations management techniques
to manage their inventories. (Inventory management is concerned with specific inven-
tory problems, such as balancing carrying costs and ordering costs, and determining
the optimal order quantity.) Linear programming (which involves computing simulta-
neous solutions to a set of linear equations) helps United Airlines plan its flight sche-
dules, Consolidated Freightways develop its shipping routes, and General Instrument
Corporation plan what instruments to produce at various times. Other operations man-
agement techniques include queuing theory, break-even analysis, and simulation. All
these techniques and procedures apply directly to operations, but they are also helpful
in areas such as finance, marketing, and human resource management.
38
The quantitative management perspective is important to a variety of management situations
today. Computer simulations, mathematical modeling, and statistical analyses are all commonly
used in many different organizations.
operations
management
Concerned with
helping the
organization more
efficiently produce
its products or
services
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Part 1:
An Introduction to Management
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