Operations Management and Inventory Management - Annotated Bibliography Example

Name Class Unit Table of Contents Table of Contents 2 Introduction 3 Inventory management 3 Article 1 3 Article 2 4 Article 3 5 Article 4 6 Article 5 7 Operation strategy 7 Article 1 7 Article 2 8 Article 3 9 Article 4 10 Article 5 11 Operational plan 12 Article 1 12 Article 2 12 Article 3 13 Article 4 14 Article 5 14 Reflection and recommendations 15 Inventory management 15 Operation strategy 16 Operational plan 16 References 16 Introduction This report looks at three topics in operations management. The topics being analysed in this case are; inventory management, operation strategy and operational plan. This is discussed using 5 articles which are critically analysed for each topic. After the analysis of all topics, a personal reflection is written which highlights on recommendations on improving the discussed ideas. Inventory management Article 1 Koumanakos, D. P. (2008). The effect of inventory management on firm performance. International journal of productivity and performance management, 57(5), 355-369. This is an article that looks at lean management in current competitive environment. It is evident that having an efficient or lean inventory is vital in improving financial performance in a firm. Firms which have high levels of inventory are highly likely to have low return rates. In managing assets, it is vital to look it as an inventory problem. It is clear that there exists a positive relationship between inventory management and the level of returns. Having an excellent inventory management translates to having an excellent company performance. Despite this, it is important to note that firm perfoamcne cannot only be determined by inventory management. There are other factors as mentioned in the article such as macroeconomic, industry and firm level which are also equally important. Based on inventory management, the goal is to minimise costs while maximising profits and satisfying customers’ needs. The inventory kept by a firm should not be too high or too small. Having lean inventory management has a positive impact on financial performance in two out of three industries analysed (Koumanakos, 2008). Article 2 Williams, B. D., & Tokar, T. (2008). A review of inventory management research in major logistics journals: Themes and future directions. The International Journal of Logistics Management, 19(2), 212-232. This is an article that makes a review on inventory management articles which has been published in main logistic outlets. From the article, it is clear that the main themes that have been under a lot of research are integration of traditional logistical decisions and inventory management using collaborative models. It is vital to expand the current theory on inventory management. It is correct to say that there lacks a review on the inventory management research. This can act as a barrier to advancement of theory and practice based on inventory management (Williams & Tokar, 2008). For researchers on inventory management to succeed in their research, they are supposed to know what has been accomplished earlier. This acts as a guide for future undertakings. Cataloguing and reviewing current inventory management research is a move that makes it easy to carry out further research. It also acts as an appreciation to those who have contributed to the field of inventory management through research. Inventory management cannot be improved if there are gaps in current literature. This calls for continuous review of existing literature and identifying gaps on what needs to be added (Williams & Tokar, 2008). Article 3 Beamon, B. M., & Kotleba, S. A. (2006). Inventory management support systems for emergency humanitarian relief operations in South Sudan. The International Journal of Logistics Management, 17(2), 187-212. Emergency humanitarian relief operations require having a good inventory support system. In dealing with humanitarian relief, it is important to note that there is irregularity in demand patterns. The varying and irregular demand is a major challenge in managing inventory. When the demand is varying, there is need for inventory methods that can be able to meet these challenges. This analysis is important in understanding how to deal with the complex emergency systems such as those experienced in humanitarian aid. This is a research that has the ability to improve how inventory in relief setting is managed. This is through the use of quantitative models. Real life application of quantitative inventory management strategies is highly applicable in the complex emergency (Beamon & Kotleba, 2006). Through this article, the authors have been able to test three different strategies to manage inventory. These are based in the complex emergency in south Sudan. The research methodology used is credible and leads to identification of critical factors which have highly contributed to inventory system performance. This has also helped in identifying existing strengths and weakness for the inventory management strategies in use. Inventory management must always be supported by continuous research as seen in this case (Beamon & Kotleba, 2006). Article 4 Rajeev, N. (2008). Inventory management in small and medium enterprises: A study of machine tool enterprises in Bangalore. Management Research News, 31(9), 659-669. This is an article that acts as a guideline for the entrepreneurs when implementing successful inventory management practices. It is vital to know inventories acts a major portion of current asses in business. Having poor inventory management can be very costly and lead to major frustrations in business. From the article, having inaccuracies in an inventory should be avoided at all costs. This is due to fact that the costs can be saved through having improved practices in inventory. Firms’ viability can be improved using a well-managed inventory. In the SMEs, IM fails in driving practices despite the importance of role played by the inventories. It is clear that even in industries which are inventory intensive, they have poor IM practices. Lack of link between physical stock and accounting system is an indicator of poor IM practices. This shows that there is a large scope for improvement in the SMEs to develop their IM practices. This is an area that is not well covered by the existing studies especially in Indian SMEs. Effective approaches in using IM are the only way to enhance industry competitiveness. Filling that gap through literature review is important since it can help in improving productivity in the SMEs (Rajeev, 2008). Article 5 Ballou, R. H. (2000). Evaluating inventory management performance using a turnover curve. International journal of physical Distribution & Logistics management, 30(1), 72-85. In senior management, managing an inventory is a major concern and a top priority. A turnover curve used in this article is an important evaluation tool. This is a generalised formula which has the capability to mimic a practical inventory control. This is a tool that helps in auditing inventory control in multiple stocking points and aggregate. This is a very powerful tool that helps in evaluating the inventory managerial performance. Through the turnover curve, it is possible to evaluate inventory management. Previous research on the turnover curve is well supported by this research. Through use of turnover curve, it is possible to represents the common policies on inventory control. Research shows that turnover curve is an accurate representation of ways in which inventories are managed in the aggregate. With a large supply chain network, the curve as portrayed acts as a tool to give insights on how inventory levels are being managed. It is important to know that turnover curve is easily developed from the available data. This is a tool that eliminates the challenge of determining whether current inventory policies can lead to required turnover. It makes it possible to manage inventory in an entire chain. This answers the main inventory questions asked by the management (Ballou, 2000). Operation strategy Article 1 Lowson, R. H. (2003). The nature of an operations strategy: combining strategic decisions from the resource-based and market-driven viewpoints. Management Decision, 41(6), 538-549. Through a successful operational strategy, a business is able to gain success. The article points out to the inventory management and the nature of operations. Through combining strategic decisions which comes from resource based and market driven view points, a deep understanding of operations strategy is obtained. It is important to note that the article offers an important insight on the operations strategy, its evolution and impact. It is hard to utilise operations planning without having an understanding of operations strategy. It is important to have a good understanding on the nature of operations strategy and its genealogy. This is well covered by the author of this article. Strategies and their components have the ability to represent varying competitive agendas. It is vital to see that this research goes beyond the definitions and acts as an approach to break new ground in operations strategy. The operation strategy helps the business in attaining its goals. Through the operations strategy, different business components are able to work together. This is well supported by the article. For a business to succeed in its work, it is important to look how each component works in collaboration with others. This is the only way in which a business is able to attain success (Lowson, 2003). Article 2 Lowson, R. (2002). The implementation and impact of operations strategies in fast-moving supply systems. Supply Chain Management: An International Journal, 7(3), 146-163. The debate on implementation and impact of the operational strategies elicits varying views and contributions. These contributions require having adequate evidence to support them. This is an article that has been able to show new forms of operations strategies and the rationale that is used. This is through use of empirical evidence. Operation strategies play an important role in the fast moving supply systems. The sector has to deal with consumer influences and the demands. It is important to appreciate the various forms of operational strategies as shown in this article. These are strategies used in addressing the disparate demands which FMCG face. These operational strategies have their impact on business. In the modern business world, the environment is challenging and business has to cope with these demands. The impact of operational strategies in the FMCG is vital since this is an industry sector which has a lot of pressure due to demands. New forms of operational strategies are very applicable in the FMCG industry. The debate in implementation and impact of operational strategies must continue being enriched by research. This will make it possible for coming up with means of attaining a competitive advantage (Lowson, 2002). Article 3 Oltra, M. J., Maroto, C., & Segura, B. (2005). Operations strategy configurations in project process firms. International Journal of Operations & Production Management, 25(5), 429-448. Operational strategy framework is highly applicable in operational management in varying environments. The frameworks are also highly coherent based on specific variables which are used when characterising them. There exists coherence between operations strategy configurations and project management configurations. It is important to look at operational strategy as an important link between project management and strategy management. Operational strategy as demonstrated by this article is highly applicable in the study of operations management. Although the three operational strategy types are common in all industries that have been analysed by this research, it is clear that there is a certain type of strategy that is only associated with specific industries. For example, costs operations strategy is associated with the low and medium technology based projects and system type projects, hierarchical organisations among others. This is while innovation operational strategy is found in projects which have high technological uncertainty. These are organisations that have their main interests in research and development. Super high technology projects utilise conformer operational strategies. This is a proof of how operations strategy is configured in given project process firms (Oltra, Maroto & Segura, 2005). Article 4 Ahmed, N. U., Montagno, R. V., & Firenze, R. J. (1996). Operations strategy and organizational performance: an empirical study. International Journal of Operations & Production Management, 16(5), 41-53. To achieve business and corporate goals, operational strategy is required. This includes goals such as profit, innovations and quality delivery. The task of coming up with the best strategy is hard and requires a lot of reasoning. Also, coming up with an appropriate outcome measures adds also more difficulties. There are several strategies which are vital in organisation performance. This includes total quality management, just in time production and benchmarking among others. There is a gap that needs to be addressed in identifying impact of given operations strategies in a firm. It is also important to know whether having multiple strategies have an added advantage in organisation performance. Lastly, strategy adoption in small and large firms needs to be looked in. as US firms looks for ways to streamline their production; they have been adopting different operations strategy. Firms which are already using strategize are performing well than those which are not. Also, utilising combination of strategies leads to varying results based on the strategies in use. Research also shows that large firms are highly likely to adopt operational strategies compared with small firms. To sum up, the positive role of operational strategy in firm performance cannot be underestimated (Ahmed, Montagno, & Firenze, 1996). Article 5 Adamides, E. D. (2015). Linking operations strategy to the corporate strategy process: a practice perspective. Business Process Management Journal, 21(2), 267-287. Operational strategy should be linked and aligned with the corporate level strategies. This is a way in which an organisation is able to maximise their performance through attaining corporate goals. The formation practices of operational strategy should be associated with the corporate level strategies through use of specific incentives. This is a major facilitator for alignment of strategic content. Through use of artefacts, linking process is facilitated. This is an article that can assist in coming up with better working environment. It is important to note that alignment of the operations and corporate strategies is an issue which is context specific. Despite this, it depends on the existing heterogeneity in operations strategy actor network. This is an article whose research shows that it is possible to come up with better workplaces and strategies in an organisation. It is thus possible to link the operational strategy with corporate strategy for an organisation to improve its results and improve workplace (Adamides, 2015). Operational plan Article 1 Brennan, L., Gupta, S. M., & Taleb, K. N. (1994). Operations planning issues in an assembly/disassembly environment. International Journal of Operations & Production Management, 14(9), 57-67. The manufacturing industry in assembly/ disassembly environment faces several problems which include accumulations, location issues, networking problems, availability of resources, scheduling problems, confusion and stock locations among others. These problems points out to operational planning problems in the industry due to incorporation of disassembly. With environmental awareness and conservation of energy, it is important to have operational planning issues in this industry addressed as seen in this article. The operational planning problems act as a hindrance and are a major challenge in the industry. This is an area that the industry stakeholders have to address to enhance industry attractiveness. Through operational planning, it is possible to increase efficiency, reduce costs and enhance quality (Brennan, Gupta & Taleb, 1994). Article 2 Ierapetritou, M. G., Pistikopoulos, E. N., & Floudas, C. A. (1996). Operational planning under uncertainty. Computers & chemical engineering, 20(12), 1499-1516. In varying economic circumstances, operational planning is bound to be affected. Through inclusion of uncertainty into the planning models, a problem which is typically linear is made stochastic. This calls for ways to deal with uncertainty in operational planning. This is well analysed by the article through looking at future plans and importance of having perfect information. Use of specific algorithms can help in addressing uncertainty. Having perfect information as explained in the article is very useful in cases where future is unknown. The decision maker in this case has to rely on expectations and beliefs on future. Through being able to address the existing uncertainties in planning, a business is able to address future bottlenecks which may lead to loss. This is also a way of managing the product line in an effective manner. Being able to have future outcomes well determined is vital in organisation planning (Ierapetritou, Pistikopoulos & Floudas, 1996). Article 3 Gaskill, L. R., & Van Auken, H. E. (1994). Impact of operational planning on small business retail performance. Journal of Small Business Strategy, 5(1), 21-35. To gain a competitive advantage in the small business sector, strategic planning is vital. Greater level of success can only be attained if strategic planning is put in place. Despite a lot of research being directed to strategic planning, little research exists on operational planning in small business. There exists a difference in operational planning activities that are in successful small scale business and failed small scale business. The value of operational planning in small firms cannot be underestimated. Successful small scale firms have better operational planning in their financial and inventory. The likelihood of success from a small scale firm can be tied up to their operational planning. This supports the article. It is thus important for the small scale firms to ensure that they have operational planning. Through operational planning, it is possible for the small scale firms to avoid failed ventures. Also, the article correctly states that market niche must match product characteristics. Through having good operational planning, business success is attainable for small scale firms (Gaskill & Van Auken, 1994). Article 4 Kallrath, J. (2002). Combined strategic and operational planning–an MILP success story in chemical industry. Or Spectrum, 24(3), 315-341. Supply chain management in a multisite production network requires having a comprehensive operational planning. This is a real-world problem which the article attempts to solve. The article points out that it is possible to solve both design and operational planning issues together as well as strategic and operational planning problem. Through developing an applied model which uses both strategic planning and operational planning the article is successful in solving the problem. It is possible to come up with an optimal solution that is within safe bounds. This is an excellent approach that should be adopted by the chemical industry. It can help in saving a lot of money and lead to stability in the organisation. This is one way for an organisation in the chemical industry to make huge savings. Organisation planning as proved by this article is about being efficient and saving costs. It involves eliminating the bottlenecks and ensuring that the firm is able to meet its objectives (Kallrath, 2002). Article 5 Mulford, C. L., Shrader, C. B., & Hansen, H. B. (1988). ‘Operational and strategic planning in small business’. Management Reports and White Papers. Paper 1 Having long run planning is vital in any business. As discussed, business success is affected by the level of operational and strategic planning. This is an article that involves incredible research on both strategic and operational planning. Operational strategies have an impact on the performance and uncertainty as indicated by the article. This is as opposed to strategic planning. Operational planning in the small scale firms is important as it is in large scale firms. This makes it important for the business to ensure that they have both strategic and operational planning in place. In fact, small scale firms can be more effective if they have both strategic and operational planning in place. The article is thus very important in pointing out barriers to planning and the impact of having planning to the managers. For the small scale firms, this is an article whose findings can help in enabling efficient business operations (Mulford, Shrader & Hansen, 1988). Reflection and recommendations Inventory management It is important to note that inventory is always one of the largest numbers in balance sheet. This is an issue that all articles on inventory seem to be tackling. It is vital to have an effective inventory control to ensure successful business operations and reduce costs. On all articles, the issue of inventory control seems easy enough to manage. It is put as a matter of knowing which items should be in stock and orders to be placed. Despite this, I believe that inventory management is a more complex issue in practice. All articles fail to look at conflicting objectives in different segments in a firm and the tentative nature o supply and demand. These are two areas which I believe that the articles have overlooked. Also, I noted that the articles did not consider firms which have multiple warehouses in different locations. Operation strategy I believe that the articles have well covered operations strategy. This is through showing how firms can maximise effectiveness and increase production while at the same time reducing costs. I have seen that in all articles, making the best use of resources is well addressed. To attain business goals, an organisation must have operational strategy. Despite this, I feel that the articles does not look at how varying components in a business can work together to attain success. This is an area that is not well covered in all articles. An operational strategy must be covered as a machine with different parts working together to attain a common goal. Also, I feel that the articles do not look at how companies define operational strategies differently. These are areas in which the articles should improve on. The research on these articles ought to work on these limitations. Operational plan I believe that research in operational plan has some deficiency. Despite looking at operational plan as a clear picture on how to attain strategic goals, there are still several limitations on the research. I would recommend that the research should look more into what, who, when and how much in strategic plan. Research on operational plan should work on these challenges. References Adamides, E. D. (2015). Linking operations strategy to the corporate strategy process: a practice perspective. Business Process Management Journal, 21(2), 267-287. Ahmed, N. U., Montagno, R. V., & Firenze, R. J. (1996). Operations strategy and organizational performance: an empirical study. International Journal of Operations & Production Management, 16(5), 41-53. Ballou, R. H. (2000). Evaluating inventory management performance using a turnover curve. International journal of physical Distribution & Logistics management, 30(1), 72-85. Beamon, B. M., & Kotleba, S. A. (2006). Inventory management support systems for emergency humanitarian relief operations in South Sudan. The International Journal of Logistics Management, 17(2), 187-212. Brennan, L., Gupta, S. M., & Taleb, K. N. (1994). Operations planning issues in an assembly/disassembly environment. International Journal of Operations & Production Management, 14(9), 57-67. Gaskill, L. R., & Van Auken, H. E. (1994). Impact of operational planning on small business retail performance. Journal of Small Business Strategy, 5(1), 21-35. Ierapetritou, M. G., Pistikopoulos, E. N., & Floudas, C. A. (1996). Operational planning under uncertainty. Computers & chemical engineering, 20(12), 1499-1516. Kallrath, J. (2002). Combined strategic and operational planning–an MILP success story in chemical industry. Or Spectrum, 24(3), 315-341. Koumanakos, D. P. (2008). The effect of inventory management on firm performance. International journal of productivity and performance management, 57(5), 355-369. Lowson, R. (2002). The implementation and impact of operations strategies in fast-moving supply systems. Supply Chain Management: An International Journal, 7(3), 146-163. Lowson, R. H. (2003). The nature of an operations strategy: combining strategic decisions from the resource-based and market-driven viewpoints. Management Decision, 41(6), 538-549. Mulford, C. L., Shrader, C. B., & Hansen, H. B. (1988). ‘Operational and strategic planning in small business’. Management Reports and White Papers. Paper 1. Oltra, M. J., Maroto, C., & Segura, B. (2005). Operations strategy configurations in project process firms. International Journal of Operations & Production Management, 25(5), 429-448. Rajeev, N. (2008). Inventory management in small and medium enterprises: A study of machine tool enterprises in Bangalore. Management Research News, 31(9), 659-669. Williams, B. D., & Tokar, T. (2008). A review of inventory management research in major logistics journals: Themes and future directions. The International Journal of Logistics Management, 19(2), 212-232. Read More