NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Operations Management

Internal Assignment Applicable for December 2020 Examination

1. What are various decision criteria for deciding a location for a business setup?
Explain these decision criteria with reference to a location decision for setting up a textile
manufacturing plant.
Answer 1

Introduction: Before you begin trying to find a business location, you ought to have a
transparent image of what you have got and what you would like to possess in future.
Bobbing up there with image could be a long method, that is each tedious and exciting –
however you would like to present it the eye that it deserves.
Concept and Application
Although several business mistakes will be corrected later, a foul location is usually not
possible to repair.There are various decision criteria for deciding a location for a business
setup like:-

1 Proximity to the Market

The nearer you're to your customers, the bigger the possibility that they'll obtain from you
once more. WHO is your client Associate in Nursingd wherever area unit they located?
area unit they different producing companies? or area unit they an finish consumer? you
need to have answers to those queries, before selecting a business location.

2 Analyse the Demographics

Demographics ar while not a doubt, one amongst the foremost vital factors to think about
once selecting a business location. It’s necessary to to be close to your target client
cluster. for instance, you don’t need to sell play consoles in a district inhabited with older
generations. The sells are going to be higher in a district dense together with your target
market.

3 Infrastructure and Accessibility

Good infrastructure is useful to any reasonably business. Power and water system,
sensible road connections ar simply a couple of factors to think about once selecting your
business location.
Lack of enough parking areas for your workers, or accessibility for folks with disabilities,
may be a difficulty in some locations. a decent location for business,is usually not during
a busy town space exclusions apply. no one desires their workers to pay hours
progressing to work.Therefore, select a location that won’t cause any issues with daily
routines and tasks.

4 Distribution Network
If your business is doing producing, you’ll need a decent location for a business start-up.
no one likes to pay more cash on transportation than they need to. deliberate before
selecting a business location, sensible proximity to suppliers is essential in minimizing
supply prices.
Enterprise League platform may be a super great tool to search out a pool of suppliers
close to your location.It’s easy to use. simply got wind of your company profile among a
moment and acquire results of the suppliers around you with one search.

5 Competition, to Be nearer or to not Be?

This business location issue could be a ambiguous blade. It creates each a bonus and an
obstacle. as an example, if the situation contains a heap of surplus customers owing to
your competitors, you may attract them as well– an additional profit for your business.
However, it may move into the alternative direction – if each side sell a similar product,
one team can find yourself losing.

6 Remote Business Location

Remote location is another versatile answer which will facilitate any business. Having
your business on a B2B platform provides you the profit to access and work with any
location worldwide. you'll now not have location as a barrier and you'll be able to simply
collaborate with firms from each location and every one sectors. begin victimisation the
B2B platform, share business tenders, receive bids and share deals.

7 Economic policy
The policy or system of a specific region might also have an effect on your call and
selection of location. Some economy favor capitalists et al square measure driven by
socialism; wherever the govt. controls all businesses. different sub-factors to think about
square measure government’s policy, business enterprise and financial policy, exchange
rates, taxes, levies and duties.

8 Free trade zones

International trade zones and trade honest centers are sensible places to web site your
business as a result of it's accessible and unremarkably receives wide substance
 9 Availability of raw materials
If you propose running a producing or production business, then the closeness or
availableness of raw materials could be a issue you need to not joke with once selecting
your business location. If your business isn't sited on the point of these raw materials,
then sourcing and transportation can cut back your gross margin.

10 Potential for growth

Will the premises be able to accommodate business growth or a spike in demand?

Moving premises could be a huge upheaval and may be time intense and expensive. a call
has to be created on whether or not the premise you're selecting could be a short-run
location or if you'd prefer to keep there for the long-standing time. Consequently, a
location’s flexibility may be a really vital issue relating to the premises’ quality for your
business wants.Whilst an ideal business location is totally different for each business,
covering these crucial areas will definitely offer you the simplest probability of beating
the chances and keeping your business on the right track for future success.

Conclusion
The closer the products are to your customers, the higher your market value. From
planning future expansions, relocating to newer offices, or opening new shops in the right
location can mean many things for your business.

2. Define and explain the term ‘Operations Management’. Explain the role of an
Operations Manager in handling Customers and Suppliers in a Supply Chain. Give
relevant examples from a Retail Store Operation
Introduction
Operations management is that the administration of business practices to make the best
level of potency potential among a company. it's involved with changing materials and
labor into merchandise and services as with efficiency as potential to maximise the profit
of a company. For example, if a corporation makes piece of furniture, a number of the
operations management selections involve the following: getting wood and material,
hiring and coaching staff, location and layout of the piece of furniture plant, purchase
cutting tools and different fabrication instrumentation.

Concept and Application

Operations and Supply Chain
In smaller organizations, there will be overlap between operations and supply chain
management. One person or department will manage or play a job in each supply chain
and operations partly this can be as a result of supply Chain Management has become a
lot of complicated over time and also the demand for extremely trained professionals has
emerged. Previously, the roles in SCM were handled by Operation’s professionals. each
positions need leadership, goal setting, organization, finance, and deciding. Managers in
each areas manage folks, parts, and provides. They each need the flexibility to speak
across departments internally and outwardly, to guide folks and groups, and to manage
human capital.

Typical responsibilities include:

1. Directing and coordinative production, pricing, sales, or distribution of merchandise

2. Managing finance activities together with sales and alternative information

3. Evaluating performance information to form applicable choices relating to

productivity, value management, and enhancements

4. Managing employees, work schedules, and distribution specific duties

5. Directing and coordinative budget activities

6. Determining merchandise to be sold-out supported forecasts of client demand

Generally, supply chain managers work additional outwardly than operations managers.
In today’s international market, provide chain managers square measure expected to own
associate understanding of operating with suppliers, logistics, and customers everywhere
the planet. they create key selections on suppliers, coordinate getting, deposit, and
prognostication.

Supply Chain manager duties could include:

1 Forecasting demand for materials or product

2 Creating offer plans to confirm accessibility of raw materials

3 Evaluating providers and crucial the effectiveness of multiple supplier methods

4 Evaluating risks to provide chains and suppliers likewise as troubleshooting problems

within the chain

5 Analyzing inventories to see a way to increase inventory turns, cut back waste or
optimize client service

6 Managing activities associated with getting, internal control, and storage

7 Coordination of offer chain with different purposeful areas, like sales, marketing,
finance, production or quality assurance
Manage offer chain workers

8 Oversight of monetary data and Budgets

A large a part of Associate in Nursing operations manager's job is to administer the

creation and administration of budgets at intervals every space of the corporate. robust
leaders can frequently monitor expenses and curtail a department's defrayment if
necessary to stay the corporate on budget. they're going to conjointly have interaction in
analytic thinking, seeking to get the simplest value for materials and administer
production ways in order that output is at peak potency levels.

9 Workflow and Staffing

Operations managers even have an honest handle on the staffing needs of the
organization. They work with unit of time to rent and train new staff and handle
disciplinary problems. as a result of they're responsive to the requirements in every
department, they'll alter the work flow and delegate tasks to boost potency within the
operation.

10 Operations Managers in numerous Industries

While operations managers all use a good style of skills to try to to their job, some,
notably in massive firms, could concentrate on a neighborhood and focus at intervals a
selected department. as somebody with a powerful background in human resources could
become an time unit operations manager, overseeing the whole department. a number of
their specific responsibilities could include:
A. Create and manage the department's budget

B. Define company policies and implement coaching

C. Monitor internal time unit systems and guarantee compliance

D. Oversee hiring objectives and verbal description creation

E. Stay on high of employment trends, legal problems and best practices

F. Purchase software system or alternative tools to enhance department potency

Conclusion
Supply chain students specialize in world markets, world offer chains, internal control,
internal control, transportation and provision, call modeling, prognostication, and coming
up with worth into the availability chain. While operations managers and supply chain
managers lead totally different areas of a company, they're each known as to contribute to
the worth of the business. Learning effective methods to implement agile, profitable,
efficient, and productive systems purpose to a additional productive bottom line.

3. Many business organizations have operations in which inventory management is

a daily and constant process. Managing a Restaurant is one such business, wherein
the procurement and managing various inventory is a very strategic process.
Explain the following concepts (with atleast one example) in Operations of a
Restaurant business, and conclude how relevant is it in the business?
a. Economic Ordered Quantity (EOQ)
b. Vendor Managed Inventory (VMI)

Answer 3.
Introduction
Inventory management could be a crucial piece of a business's gain, however tons of little
businesses do not observe sensible management once it involves the things they sell.
Some businesses have insufficient inventory, unable to satisfy customers' expectations by
provision enough offered product. This typically drives customers away, typically to a
different business, and typically permanently.
On the opposite hand, several businesses go the opposite manner, overstocking things
"just just in case." tho' you will always have the things your customers area unit trying to
find, the danger with this strategy is trauma cash from your business. Excess inventory
not solely ties up valuable income, however it conjointly prices a lot of to store and track.

There are various ways through which we can manage the inventory in the business like:-

1 Prioritize your inventory

Categorizing your inventory into priority teams will assist you perceive that things you
wish to order a lot of of and a lot of often, and that area unit vital to your business
however could value a lot of and move a lot of slowly. specialists usually counsel
segregating your inventory into A, B and C teams. things within the a gaggle area unit
higher-ticket things that you simply want fewer of. things within the C class area unit
lower-cost things that flip over quickly. The B cluster is what is in between: things that
area unit moderately priced and move out the door a lot of slowly than C things however
a lot of quickly than A things.

2 Track all product information

Make sure to stay records of the merchandise info for things in your inventory. This info
ought to embrace SKUs, barcode knowledge, suppliers, countries of origin and heap
numbers. you may additionally think about trailing the price of every item over time
therefore you are alert to factors that will amendment the price, like scarceness and
seasonality.

3 Audit your inventory

Some businesses do a comprehensive count once a year. Others do monthly, weekly or

perhaps daily spot checks of their hottest things. several do all of the higher than. in spite
of however typically you are doing it, build it some extent to physically count your
inventory frequently to confirm it matches up with what you think that you've got.

4 Practice the 80/20 inventory rule

As a general rule, eightieth of your profits return from 2 hundredth of your stock. rate
inventory management of this 2 hundredth of things. you must perceive the entire sales
lifecycle of those things, together with what number you sell during a week or a month,
and closely monitor them. These square measure the things that cause you to the foremost
money; do not let down in managing them.
5 Be consistent in however you receive stock

It may seem to be good judgment to form certain incoming inventory is processed,

however does one have a typical method that everybody follows, or will every worker
receiving and process incoming stock get laid differently? tiny discrepancies in however
new stock is taken in might leave you scratching your head at the top of the month or
year, speculative why your numbers do not align along with your purchase orders. certify
all employees that receives stock will it an equivalent manner, which all boxes area unit
verified, received and unpacked along, accurately counted, and checked for accuracy.

6 Track sales

Again, this looks like a no brainer, however it goes on the far side merely adding up sales
at the top of the day. you ought to perceive, on a commonplace, what things you
oversubscribed and the way several, and update your inventory totals. however on the far
side that, you will need to research this information. does one recognize once sure things
sell quicker or drop off? Is it seasonal? Is there a particular day of the week after you sell
sure things? Do some things nearly always sell together? Understanding not simply your
sales totals however the broader image of however items sell is very important to keeping
your inventory in restraint.

7 Order restocks yourself

Some vendors supply to try and do inventory reorders for you. On the surface, this
appears like a decent issue – you save on workers and time by material possession some
other person manage the method for a minimum of some of your things. however bear in
mind that your vendors haven't got an equivalent priorities you are doing. they're wanting
to maneuver their things, whereas you {are looking} to stock the things that are most
profitable for your business. Take the time to ascertain inventory and order restocks of all
of your things yourself.

8 Analyze provider performance

An unreliable provider will cause issues for your inventory. If you have got a provider
that's routinely late with deliveries or often shorts AN order, it is time to require action.
Discuss the problems along with your provider and determine what the matter is. Be
ready to modify partners, or traumatize unsure stock levels and therefore the chance of
running out of inventory as a result.

9 Invest in inventory management technology

If you are a sufficiently small business, managing the primary eight things on this list
manually, with spreadsheets and notebooks, is doable. however as your business grows,
you will pay longer on inventory than you are doing on your business, or risk your stock
obtaining out of management. smart inventory management package makes of these tasks
easier. Before you decide on a package resolution, check that you perceive what you
would like, that it provides the analytics.

10 Use technology that integrates well

Inventory management code is not the solely technology that may assist you manage
stock. Things like mobile scanners and POS systems will assist you be track. once
finance in technology, grade systems that employment along. Having a POS system that
cannot communicate along with your inventory management code is not the finish of the
globe, however it'd price you additional time to transfer the info from one system to a
different, creating it straightforward to finish up with inaccurate inventory counts.

A Economic Ordered Quantity (EOQ)

Economic Order Quantity (EOQ) is a production formula used to determines the most
efficient amount of goods that should be purchased based on ordering and carrying costs.
In other words, it represents the optimal quantity of inventory a company should order
each time in order to minimize the costs associated with ordering and holding inventory.

There is an importance of Economic order quantity like:-

1 Minimizes Storage and Holding prices

Storing inventory could also be, expensive for tiny business homeowners. the most
advantage of the EOQ model is that the made-to-order recommendations provided
concerning the .most economical range of units per order. The model could counsel
shopping for a bigger amount in fewer orders to require advantage of discount bulk
shopping for and minimizing order prices. or else, it's going to purpose to additional
orders of fewer things to attenuate holding prices if the high and ordering prices are
comparatively low.

2 Specific to the business

Maintaining spare inventory levels to match client demand could be a equalization act for
several tiny businesses. Another advantage of the EOQ model is that it provides specific
numbers explicit to the business relating to what proportion inventory to carry, once to
re-order it and the way several things to order. This smoothes out the re-stocking method
and leads to higher client service as inventory is obtainable once required.
3 Based on Assumptions

The EOQ model assumes steady demand of a business product and immediate
accessibility of things to be re-stocked. It doesn't account for seasonal or economic
fluctuations. It assumes fastened prices of inventory units, ordering charges and holding
charges. This inventory model needs continuous watching of inventory levels. The
effectiveness of the essential EOQ model is most restricted by the idea of a one-product
business, and also the formula doesn't provide, combining many completely different
merchandise within the same order.

B
Vendor managed inventory is a supply chain agreement where an upstream agent (e.g.
supplier or manufacturer) takes control of the inventory management decisions for one or
more downstream agents (e.g. retailers).

Vendor Managed Inventory works by making a dependent relationship between each side
of a dealings that permits the parties to share risk and work along for shared advantages.
By taking care of a buyer's inventory and provide chain management, the seller will
manage and manage the complete offer chain.

There are various benefits of Vendor Managed inventory:-

1 Improved alignment of inventory with client demand.

In a VMI relationship, the provider takes charge of replacement, permitting the provider
to dynamically modify inventories in response to client demand. VMI improves the
general provide chain responsiveness to seasonal changes, special promotions, and new
initiatives.

By smoothing out the consequences of demand variability, suppliers will higher

coordinate manufacturer lead times. In turn, suppliers will carry a throw inventory of
finished product. internet impact is lower carrying prices and reduced disruptions from
stock-outs and different inefficiencies.

2 Streamlined processes and lower prices.

Because the provider controls client inventory in a very VMI relationship, the provider
are able to do vital efficiencies. The ordering method is usually supported additional
correct and up-to-date information, that permits for price savings by achieving VMI
advantages like these:
Reducing the frequency of expensive unpunctual orders,
Reducing the range of orders, and
Reducing returns because of product replacements.

3 Improved information insight

A VMI program takes the supplier’s information analytics to new levels of sophistication
that feeds into its entire operation. the advantages transcend the warehouse. as an
example, a stronger understanding of actual demand helps sales managers improve
performance and develop stronger relationships with customers. As customers share
additional and higher information, the supplier’s insights into its marketplace usually
expand in valuable ways that.

Conclusion So we can say that with these concepts manager of the company can manage
everything easily and achieve their goals.