DISCUSSION AND REVIEW QUESTIONS
1. Operation management is the management of systems or processes that create goods and/or provide services. Supply chain is a
sequence of organization – their facilities, functions, and activities that are involved in producing and delivering a product or
service.
2. The three major functional business organizations are finance, marketing, and operations. Finance is responsible for securing
financial resources, marketing is responsible with promoting and/or selling goods or services, and operations is responsible for
creation of goods and services.
3. Operation function consists of all activities that related in producing goods and providing services. It is the core of most business
organizations because it is responsible for the creation of goods or services.
4. The five differences between goods production and service operations
a. Degree of customer contact
b. Labor content of jobs
c. Uniformity of inputs
d. Measurement of productivity
e. Quality assurance
The five similarities between goods production and service operations
a. Forecasting and capacity planning to match supply and demand
