Operations Management and Supply Chains Essay Example | Topics and Well Written Essays - 750 words

Operations Management and Supply Chains - Essay Example This helps to minimize the unnecessary movements of the inventory within the work place which in turn lowers the cost of material handling. This will also eliminate the necessity of having a large space for storing inventory within the firm (CSCMP and Nada, 2014). To successfully lower the inventory as well as the lot size, the firm must always know what it has to produce, when it should produce and the quantity of the product it should produce. This in turn will depend on the demand of the product and a clear knowledge of the amount of raw materials and labor force required. Effective methods of forecasting the demand will help predict the quantity that consumers will need in the long term period. The availability of the required labor will eliminate the necessity of adjusting the operation hours all the time and avoids the possibility of stoppage of work due to inadequate labor. Upon achieving all these important factors then the firm can comfortably order the amount of inventory required for that given period only. For I know the plans I have for you,† says the lord. â€Å"They are plans for good and not for disaster, to give you a future and a hope (Jeremiah 29:11). Another means of lowering inventory and lot size is through proper process and product designs. Through proper designs in the process and the product means that there is less uncertainity in the production process that builds confidence in the workers and ensures that the consumers will accept the products. As a result, it will not be necessary for the firm to maintain additional inventory or lot size to cater for the uncertainties. In addition, good process design will ensure flexibility in the operations hence easy to adjust the system to respond to changes in customer demands and preferences (CSCMP and Nada, 2014). Lean production system aims at maximizing the value that is added by each