Operations Scheduling Techniques and Inventory Management Policies: A Case Study of Aldi
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This essay discusses the importance of operations scheduling techniques and inventory management policies in the context of Aldi, a popular German discount market chain. It explains how these techniques help in improving efficiency, reducing costs, and meeting customer demands.
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Table of Contents MAIN BODY...................................................................................................................................1 REFERENCES...............................................................................................................................8
MAIN BODY Operations management is basically considered as the area of management which is related to the control and design of the process in the redesigning and production of the business operations in the production of services or goods. It is basically concerned with the process that involves transformation of a range of inputs into output of services and goods which are purchased by the consumers. The main purpose is to control and design the process for the purpose to ensure that the business operations are efficient for the purpose to minimise the use of resources in order to meet the requirements of the customer. The below essay involves how the operations scheduling techniques are used in order to formulate a plan while organising work and clearly explaining the knowledge of the work system processes and layout planning within a business organisation and involves the importance of the inventory management policies for the controlling the production costs(Huntand and Zhuang, 2022). Aldi is a popular brand from German founded in 1946 and headquartered in Essen Germany and Mulheim Germany. It is a family owned discount market chains that involves around 10,000 stores among 20 countries. The Layout planning is basically considered to be one of the best physical arrangement of the resources which involves a customer space within a facility andthese resources can be categorised asentire office, desk, a person, a cabinet or a department(Kambli,Sinha and Srinivas, 2020). The inventory management basically involves the process that involvesselling, ordering, using, storing and selling a inventory of the organisation. It further involves themanagement of the components, raw materials, finished products and also includes the processing and warehousing of the items. The process of inventory management is used by the organisations to the purpose to receive, order and manage the various commodities sold to the customers. In addition to that the procedures and policies helps the organisation to actively participate in managing the various products in the facilities. The above concepts will be discussed in the rest of the analysis. In context to the operational scheduling it helps in following a sequence of the business operations which are specified on the route of production. In context to organisations, the operations managers uses basically three methods that involves the critical path, PERT and Gantt Charts. In context to organisations, the main objective is to reduce the time and costs involved in the process of production. The production scheduling basically aims to increase and maximise the efficiency operations and reducing the costs. In context to Aldi, the layout planning plays a very important 1
role and is quite important in affecting the service quality and productivity. Poor layout planning basically results in poor communication, increased costs, information flows and frustrated consumers. In context to organisation, layout planning plays a very important role as it helps in setting up face to face interaction among the workers. In context to proper layout planning it plays a very important role in building up good relations, improving communication and increasing the flow of communication(Lamba and Singh, 2018). In context to Aldi, the work systems allows the everyday tasks to operate in a highly coordinated manner and also helps in providing a tool or framework for the purpose to produce services and products in the organisation. A good inventory management strategy plays a very important role in the organisation. In context to Aldi, the inventory management strategy plays a very important role in improving the accuracy of the inventory orders. With the help of proper management it helps in figuring out the exact level of inventory required by the organisation. In addition to that it helps in preventing the product shortage and also allows to have a sufficient stock of inventory without over filling the warehouse(Copacino, 2019). In context to Aldi, the organisation uses Just in time inventory model that helps in delivery of the products whenever required. It helps in controlling the production costs and reduces the capital tied up in the stock which involves reducing the associated labour costs and cost of warehousing. In context to Aldi, the organisation uses just in time approach for the management of its stores through holding the stock which is needed. The stock is quite costly and therefore the organisation buys only the stock which is required. The working capital of the organisation is improved when stocks are reduced. In context to the stores of the organisation, everything is focused on reduction of the cost of managing and holding the stock. In context to the process of buying and selling in the organisation within the Aldi stores, the organisation operates in a time based management principles and involves the requirement of cashiers and fewer tills. In context to Aldi, the organisation has a distinctive approach in terms of retailing. In context to organisation, its operations focuses on providing the customers with good quality products and the organisation achieves by ensuring the operations in efficient way. The organisation is able to offer highest quality products a less prices with the help of adopting a variety of lean approaches. In context to inventory management, the process is considered to be a good practice for a organisation and in terms of organisation it is very important to keep a regular check on the inventory level. The 2
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proper inventory management can either break or make a business and provides various benefits. A good inventory management strategy helps in improving the accuracy of the inventory orders. It helps in figuring out the inventory and also prevents product shortages and also allows to keep enough inventory without over filling the warehouse(Jeong and Lee, 2022). In addition to that it helps in leading to a more organized warehouse. In context to organisation it helps in ensuring the records in a accurate way and helps in saving up money. The inventory management helps in saving up money and time and provides various monetary benefits to the organisation. It helps in keeping the track of the products and also helps in saving the time and effort for the purpose to ensure the records are available in accurate manner. The good inventory management helps in saving the money. Furthermore, it helps in increasing the productivity and efficiency. It also involves the inventory management devices that involves the inventory management software and barcode scanners which basically results in improving the productivity and efficiency. With the help of these devices it helps in eliminating the manual process for the employees and also helps in focusing on the various areas of the organisation. A good inventory management strategy helps in keeping the consumers and leads to striving for repeat customers(Chowdary and Fullerton, 2019). In addition to that it helps in meeting the demand of consumers in a quick way and helps in meeting the demands by allowing to have right products in right time as per the needs of the consumers. In context to Aldi, the organization achieve its objectives with a way to create a series of tasks whichneed to be carried out and performed as per the requirement. It involves hiring employees, selling services, responding to the consumers and purchasing materials. With the help of right placement of tasks in a well organised series and interconnected systems helps in benefiting the organisation with increasing the bottom line and introducing the efficiency in everyday working. The work in a organisation allows everyday tasks to operate in a well organised and coordinated manner and also provides a basic framework that helps in producing the products and services. A work system is basically a collective effort that is designed when a goalor task is identified and one person or more persons are required to accomplish the task. The work systems basically helps in incorporating the technology, business resources and information for the purpose to create products and services for the internal and external. The individual recruited in the organisation need to operate within the work system that helps in defining and organising the system that allows achievement of goals. The system need to be 3
designed in a way that to have a detailed information about the machines and workers and their requirement. In terms of work systems, there is not a single type of work which exists in the organisation. In context to work systems it involves the supply chain, information system and services of the customers and employees. The e-commerce websites can be also considered as the work systems that helps in accomplishment of the tasks related to management of transactions, customer service and marketing. In some cases the work system are designed in a way that helps in accomplishment of the tasks and involves a special project that includes data collection and conference or specific product and link of other work systems with a larger work system that involves design work system, packaging work systems and supply chain work system. In context to the work systems it involves a series of the elements that basically influences the working system and involves the elements which are interdependent and operates for the purpose to create a whole system. The structure of the organisation involves the roles, individuals and involves the roles related to the work. The policies of the organisation involves the statements, rules and agreements that involves the needs of work to be completed. The organization involves the leadership practices that are present in the control of the organisation and direct the accomplishment of the work and also focuses on maintaining motivation and focus. The work systems works greatly among the organisation and involves basic framework of the components which could be used in order to fill the work system. These components basically involves the process, participants and activities and also involves the process strategies, physical environment, technologies and the end product. The dynamics of the work system could be achieved through imposing a set of phases in the work system. There are various phases in the work system which involves on going improvements, implementation, development and initiation. It also involves changes, unplanned and planned revisions that occur while using four phases. In context to the planned changes it involves four phases and in case of unanticipated or unplanned changes that occur in each phase of the form of fixes, adaptations and experimentation. The plan formulation is basically considered as the iterative process that helps in establishing planning objectives and involves evaluation of the management measures that helps in addressing the aims and objectives and also involves development of the potential alternatives for the purpose to meet the screen out plans and meeting the objectives based on the comparison criteria and identifies plans for the 4
implementation. In context to organisation workforce planning and scheduling are considered to be the final step in the design and operationplanning. The workforce planning and operation's scheduling are implemented during the transformation of input to output. The scheduling basically involves dealing with the production of the quantity of product within the time period. The workforce planning basically deals with the allocation of the resources with priority to work job with a delivery date. In context to operations planning it helps in ensuing that workflow is established in a proper way that helps in allocation of job with the help of machines. The scheduling involves the timing, quantity and allocation of the resources for the purpose to help the business in a cash flow planning. In context to the three main objectives the production scheduling involves proper utilization of the work centres, avoiding delays in the completion and reducing time of job on machines. The workforce planning helps in ensuring optimum productivity with the help of ensuring proper utilization of the priorities and limited resources and job order at different work centres. The workforce control helps in ensuring that maximum output could be achieved from workforce, machines and raw materials. It involves the product related data which is recorded for the purpose to establish a control of input and output for the optimum utilization ofresources and achieving overall efficiency. The main aim or objective of the workforce planning and control involves recording data in relation to the process quantities, providing measurement of the productivity and efficiency, prioritizing various job orders, recording the output data in order to monitor the capacity control and providing status to the workplace orders to control panel. In context to the manufacturing operations it involves various challenges in order to keep the production efficient and on time. Improvement in technologyhelps in providing various solutions to the organisations which is also known as Operations Scheduling. It basically involves the process of operations and assigning jobs to the labor resources andright machines. I n order to make sure that the production is completed in a timely manner it involves the timing and utilization of resources. When a plan is implemented in a proper manner it helps in decreasing the overall production time and increasing the revenue of the company. It also helps in dealing with the utilization of resources and involves a sequence of operations that helps in ensuring the most efficient production schedule. The operational scheduling plays a very important role in maximizing the resource Utilization. It also further helps in manufacturing the time reduction. In context to 5
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creating a proper schedule, the overall production time is reduced. It also helps in minimizing the inventoryand increases optimization of the efficiency of labor. With a efficient production schedule it not helps in providing benefits to the workers but also improves the customer services. It also helps in increasing the output and profits and involves a efficient schedule that helps in increasing the number of products and results in increasing on time delivery and increased profits. There are various functions of Operations scheduling that involves allocation of resources and involves assigning of the jobs to departments for the purpose to provide a clear picture of the capacity of the organisation. It involves determining the right sequence of job which need to be performed and involves a technique that helps in sequence of the jobs and running of the jobs and results in reducing the machine set up(Apte, Bacolod and Carmichael, 2020). In context to organisations when these operations are scheduled in a right manner it helps in getting idea and notifying customers regarding order status. In context to Aldi, the operational management is basically a field of business that includes managing the business operations for the purpose to ensure execution of the projects in a efficient way and involves performance of the various strategic functions. The major functions of the product design involves the creation of the product and includes expanding ideas and generating ideas that helps in production of the new products. In context to organisation, the operations manager responsibility is to ensure that the product are sold to customers in order to meed the needs keeping in mind the current market trends. The customers are interested in product's quality rather than quantity and the organisation should focus on creating systems that focuses on developing the products that helps in meeting the needs of the customer. It further involves forecasting which involves prediction of the future events. In context to Aldi, the operations manager is involved in prediction of the demand of the products of the company. Theorganisationalmanagersreliesonthepresentandpastdatathathelpsthe organisation to determine the future trends in the consumption and helps the organisation to help the organisation to meet the demand of market. The operations managers focuses on controlling the inventory, sales, source of supply, production process which are needed for supply of required goods at cheap prices. In context to delivery management, the operations managers has to perform role and responsibility of the management of delivery. The manager need to ensure that the delivery of the goods is done in timely manner. It is important to follow up the customers 6
for the purpose to ensure that goods are delivered in a timely manner and meets the needs of the customer. In context to retail market it has witnesses the competition among various firms and involves creation of the stiff competition among players. In context to aldi, the organisations need to develop various strategies which will help the firm to achieve a competitive advantage. In context to Aldi, the organisation could not afford to disappoint its consumers.There are various benefits in the operations management that helps the organisation in order to ensure quality products and services to the consumers and helps in meeting the goals and objectives of the organisation that helps in achievement of needs of the customers. The operations manager involves a list of processes that helps in determining the order needs(Xue,Douand Shang, 2022). 7
REFERENCES Books and Journals Apte, A., Bacolod, M. and Carmichael, R., 2020. Tradeoffs among attributes of resources in humanitarian operations: Evidence from United States navy.Production and Operations Management,29(4), pp.1071-1090. Chowdary, B.V. and Fullerton, C., 2019. Improvement of steel melting operations at a Caribbean company: a lean manufacturing approach.International Journal of Advanced Operations Management,11(1-2), pp.102-125. Copacino, W.C., 2019.Supply chain management: The basics and beyond. Routledge. Heshmat, M. and Eltawil, A., 2018. A new sequential approach for chemotherapy treatment and facility operations planning.Operations Research for Health Care,18, pp.33-40. Hunt,K.andZhuang,J.,2022.BlockchainforDisasterManagement.InBigDataand Blockchain for Service Operations Management(pp. 253-269). Springer, Cham. Jeong,S.andLee,J.,2022.EnvironmentandEnergy?TheImpactofEnvironmental ManagementSystemsonEnergyEfficiency.Manufacturing&ServiceOperations Management. Kambli, A., Sinha, A.A. and Srinivas, S., 2020. Improving campus dining operations using capacity and queue management: A simulation-based case study.Journal of Hospitality and Tourism Management,43, pp.62-70. Lamba, K. and Singh, S.P., 2018. Modeling big data enablers for operations and supply chain management.The International Journal of Logistics Management. Xue, X., Dou, J. and Shang, Y., 2020. Blockchain-driven supply chain decentralized operations– information sharing perspective.Business Process Management Journal. 8
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