ENGL 112 Lecture Notes - Lecture 12: Direct Market, Outsourcing, Human Capital
Document Summary
Operation concerns with business processes in creating a product/delivering a service taking inputs to outputs. Long-term decision examples: creating a new product, choose a factory, lease machinery, etc. Middle-term decision examples: changing distributor, planning holiday sales, etc. Key principles: framework: process: steps to accomplish something, inventory: stuff that is sitting there waiting to be sold. Reasons: costumers do not like it/seller is waiting for the market price to raise/too many supply, not enough demand: variability: recognition that something is not constant. E. g. human capital (the quality of employees), taste of the market, material cost, labor cost, etc: capacity: limits of how much you can produce, or how many costumers you can serve. Because it can affect the quality of your products and services, plus, you need to have extra resources/personals to deal with emergencies: measurement: the idea that we can measure all the above factors.
