Techniques for Inventory Planning in Business Management

Running head: BUSINESS MANAGEMENT
Business management
Name of the student:
Name of the university:
Author note:

1
BUSINESS MANAGEMENT
Section-A
Response to Question No-1
Operation management layers include the operation functions linkage to customer layer,
operations support layer, layer of innovation, core operations layer and supplier layer (Rosemann
and Brocke 2015).
The elements of operation management in Airline industries are:-
 In customer layer operation, the Airline industries deal with ultimate customers
and dealers. Selecting and designing of service impacts a lot in the efficiency of
Airline industry and thus service in Airline industry helps in rendering the quality
outcome.
 Plant location by operation managers has a significant role in Airline industry as
once the airport is established it cannot be shifted frequently. The operations
support layer emphasizes on costing, planning, maintenance, IT, design and
industrial engineering.
 Capacity planning by the operation managers implies in the availability of
resources to meet the demand of customers. The supplier layer focuses on various
services providers to the customers
 Quality assurance is the most essential aspect of Airline industry as the service
quality helps in maintaining customer's stability and acquires the market share.
The core operation layer helps in service delivery system, in testing, assembling
and fabrications of the service to be rendered.

2
BUSINESS MANAGEMENT
 Production planning and control specifies to achieve the desired output with the
help of layer of innovation, which includes innovation strategy and research &
development.
Response to Question No-2
Capacity planning is a method used to analyze the overall capacity of production (Pal and
Hui 2013). There are certain steps required to plan for capacity planning.
 Determining service level requirements specifies how the work to be done. It
examines the workloads, the unit of work to be done and sets the service levels.
 Capacity planning is done by analyzing the current capacity that shows the use of
various resources in each workload.
 Future planning is done to optimize the production process for the future.
Identification of bottleneck in process analysis can be done while there is a fall in
meeting up the expectations and the surveys with customers results in dissatisfaction. On the
other hand, if there is an increase in complaints from the employees, then bottleneck analysis can
be identified.
Wandering bottleneck effect capacity planning as bottleneck shifts overload from one
resource to another over a period of time. Moreover, this shifting of bottleneck creates time
issues and leads to dependency and variant in resources, which reflects inefficiency in meeting
up the target requirements.