LOGISTICS & OPERATIONS MANAGEMENT 3 Essay Example | Topics and Well Written Essays - 500 words

LOGISTICS & OPERATIONS MANAGEMENT 3 - Essay Example Thus managers can consider the inventory management problem to be a part of operations scheduling problem. Conventionally managers take a narrower view of the delivery. The timing of activities may have a direct impact on resources and the level of service (Naylor, 2002). The purpose of capacity management is the planning task, and the modification of capacity is the key problem area in system control. Capacity decisions will have a direct impact on system performance and on both resource utilization and customer service. It is important to note that organizations cannot operate without good capacity management. For instance, excess capacity gives rise to low resource productivity, while inadequate capacity means poor customer service. Decisions made in other areas have a direct impact the other area. Inventory management is aimed to plan and facilitate the provision of effective customer service. For instance, organizations cannot exist without stocks of raw materials, work in progress or, where appropriate, output goods. The planning of inventory levels, the control of inventories and the maintenance of such stocks are crucial for production and successful performance.