Operations Scheduling Techniques and Inventory Management Policies in Tesco

This report discusses how Tesco uses operations scheduling techniques to formulate business plans, including First Come First Served, Shortest Processing Time, Earliest Due Date, and Critical Ratio. It also explains how knowledge of layout planning and work system processes are applied in the organisation. Finally, the report highlights the importance of inventory management policies for controlling production costs.

Operations

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
How operations scheduling techniques have been used to formulate a plan when organising
work.............................................................................................................................................3
Clearly explaining how knowledge of layout planning and work system processes within a
business organisation have been applied.....................................................................................5
The importance of inventory management policies for controlling production costs.................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Operations are defined as the performance of a practical work or something that involves
practical application of principles or processes. Operations are the business activities that are
performed by an organisation to convert its material into finished products and services as well
as sell them to customers for earning profits. To handle all operations, businesses uses operations
management techniques that helps business to create high level of efficiency that lead
organisation towards growth and success. Operations management involves utilising resources
such as staff, material, technology and equipment in efficient manner that enhances overall
efficiency and effectiveness of business. In this report chosen organisation is Tesco which is
British multinational groceries and retailing organisation found in 1919 by Jack Cohen.
Headquarter of organisation situated in Hertfordshire, England, UK. Organisation deals in
retailing books, electronics, furniture, petrol, clothing and various others. This report covers how
operations scheduling techniques are used to formulate business plan. Apart from that, how
knowledge and understanding of layout planning and work system process are applied in
organisation. Importance of inventory management policies for controlling production cost are
explained in this project report.
TASK
How operations scheduling techniques have been used to formulate a plan when organising work
Operation scheduling is defined as the process of establishing both time as well as use of
resources in organisation. It is the process of arranging, controlling as well as optimizing work
and workload in defined production process or manufacturing process. As scheduling is used for
allocating machinery, plant, human resources and production process that leads business
operations and activities in right direction (Reinhardt, 2017). There are various functions are
included in operations scheduling such as properly allocation of resources, ensuring optimum
utilisation of plan and machinery of minimum possible cost, make sure that need of human
resources are optimal, determine the sequence of job as well as clearly defined the job roles and
responsibilities that helps business to attain determined goals and objectives with efficiency and
effectiveness. There are different types of operations scheduling techniques are used by the
Tesco that enables it to develop effective planning and strategies that lead business to attain
determined goals and objectives with efficiency and effectiveness. Scheduling of operations

enable business to perform organisational operations in sequential manner so they can contribute
in accomplishing organisational goals and objectives on time with great efficiency and
effectiveness.
First Come First served is efficient operations management technique that is implemented
by the Tesco to manage operations in efficiency. It is important for organisation which deals in
single items than organisation prefer first come first served approach of scheduling. In this
technique of operation scheduling, production scheduling is based on when products are ordered
by the customers. If organisation like Tesco has variety of products with different manufacturing
times as well as deadlines than this can end up being less effective for meeting deadlines.
Respective organisation uses this operation scheduling technique to formulate planning when
organising work (Li, Xiao, and Pan, 2019). Organisation develops plan and strategies in first
come first served manner that enable business to perform defined operations with efficiency.
Organisation uses this technique to maintain organisational operations in proper manner that
helps business to attain determined operations in efficient manner. This technique enable
business to serve their customers in efficient manner that retain them with organisation for longer
period of time.
Shortest Processing Time is another operation scheduling technique that helps business to
produce products on quick bases as well as priorities job or work that take least amount of time
within work has to be completed. Tesco adopts this method because it is faster as well as reduce
time that is lost when organisational machines are switches between jobs (Baumgarth, 2018). As
this technique faster organisational operational process that helps business to develop effective
planning and strategies. If there are three identical products are ordered that contains different
types of products such as quick produced piece and slowly produced piece so, this operation
scheduling technique help to manage these orders in efficient manner. Tesco manages all orders
according to this technique and develop planning that lead business towards right direction.
Earliest Due Date scheduling is based on ordering production jobs on the bases of
deadlines. Organisation adopt this technique and working on products first with earliest due date,
it is especially effective with machines that have single jobs as well as when deadlines are spaced
out. Tesco uses this operation schedule that help business to produce products before deadline. It
plays important role in developing an effective plan regarding operations that lead business
towards performing operations in effective manner (Vy, 2021). Critical ration is also the

operation scheduling technique that is similar to using slack time remaining. Difference between
these techniques are that instead of subtracting processing time from time remaining in this
technique time is divided. All these operations scheduling techniques are used by the
organisations for maintain sequence and scheduling of operations as well as formulate effective
planning while organising work. Tesco analyse all these operations then develop effective
policies and sequence to perform operations that ensures that defined operations are performed
with efficiency and effectiveness. Organisation analyses the requirement of organisation adopt
most effective and proper operation scheduling technique helps business to gain sustainable
competitive advantages in market over other competitors. It helps business to perform
organisational operations with efficiency and effectiveness and lead overall business towards
growth and development. Implementation of these techniques enable business perform defined
operation in efficient manner. It also reduces organisational cost and ensures that business goals
and objectives are achieved in defined period of time (Mak, and Choi, 2020). Tesco implement
all techniques, planning and strategies at all stages of organisation properly and communicate all
these roles and responsibilities at all hierarchical level of business so employees perform their
defined operations as well as contribute to attain business objectives. Inventory management
helps business gain competitive advantages as well as utilise their resources with efficiency and
effectiveness. It reduces organisational production and operational cost as well that enhances
overall profitability and functionality of organisation.
Clearly explaining how knowledge of layout planning and work system processes within a
business organisation have been applied.
The layout planning is considered as main business activity which helps in development
of a business. The layout planning is a major business activity which includes arrangement of
resources that are beneficial for business development. The allocation of resources is an
important activity which should be performed in order to lead the marketplace. All major
companies which are functioning in the international and national marketplace should focus on
analysing layout planning for sustainable operations. It is related to arrangement of resources
available in production system that occupy space in context of facilities. There are different types
of resources required in organisation in different department (Çubukcu, 2018). Layout planning
of these decision is taking more time for designing new facilities and making changes in
resources along with movement of machine as well as addition of new employees. It is an

activity that is focusing on increasing productivity and satisfaction of employees through
maximisation of production as well as reducing production cost of company. It is a flexible
process as it can be changed on basis of change occur in new process or techniques related to
production. It should be designed in a manner that will satiety needs of different stakeholders of
production system like supervisors, managers, employees and other person.
The work system processes which are applicable in TESCO, helps in organising a specific task in
a fruitful manner. All major companies which are present in the global marketplace should focus
on development of work system processes. The Layout planning is considered as major focus of
a business which helps in supporting optimum utilisation of resources. In the recent times, it is
important for a company to focus on layout planning for sustainable growth (Dedeić,
Hrustemović, and Ovčina, 2019). The major objectives which are to be achieved by a company
includes application of different theories for operations management. It is also majorly important
for TESCO to set planning objectives according to the layout planning. This is essential in
overall development of business entity and its different dimensions which are important for
focused development. It is also major role of strategic management of the company to analyse
the major consequences of goal setting for welfare of organisation. It is important for business of
TESCO as it provide them economies of scale that allow them to manage raw materials, goods
which are in progress as well as finished goods. It can be done to effectively utilising resources
and reduce wastage of efforts, time and raw materials. It also assists business to reduce time that
is invested in work in progress. This can be by adopting an effective method for completing
work that allow them to saves efforts of people work in organisation. Project layout assist to
utilise available space in organisation in effective manner that is important for improving
productivity of company. It also minimises barriers and problems occur in process of production
and ensure smooth flow of operation of company.
Layout planning is majorly related to develop major policies and plans which are
essential for development of a company. The layout planning of TESCO must be also facilitated
by effectiveness of operations and functions (Jing, Huaping and Haiyan, 2017). Project layout
decision are important for company as it allow them to create competitive priorities of
organisation which is linked with cost, customer contact, capacity, flexibility, process and other
things. Effective planning layout allow and organisation to be able to make different strategic
decision related to cost of company as well as differentiation of products. All major companies

which are functioning at the global marketplace should include strategic framework which is
essential for company development. The work systems process includes major company
planning which is important for overall growth of company. This is also one of the major role
and responsibility of a company to support work development strategy for better and desired
success. In order to increase the effectiveness and efficiency of a company, it is essential for a
company to include practices related to business development. It is a considered as collective
efforts and designed as particular task and goal is identified. It is a system that incorporate
information, technology and resources of business for purpose of creating products and service
for customers (Tang, 2018). Organisation recruit people in work system needs to defined and
also needs to organise system that allow them to attain goals of organisation. The major focus of
a company should be on systematic development in order to achieve better targets and goals. In
project management and accomplishment of a task, layout planning plays an important role. It is
also majorly important for an individual to focus on development related to analyse key factors
associated with business. In the recent times, it is important for a company to analyse key factors
related to external environment for long term development of the organisation. This is also major
role of management to analyse goals and objectives related to resource planning for growth and
expansion of a business. It is also key role of management of TESCO to develop layout planning
according to organisational needs. It is ethical duty of management of a company to focus on
developing major consequences related to business development for strategic approach. In the
era of stiff competition between companies, it is essential for the organisation to develop
systematic planning based on goals and objectives.
The importance of inventory management policies for controlling production costs
Inventory management is defined as the process that is used by the organisation to order, receive
as well as manage various products that are sold to consumers. Owner and managers of business
concentrates on inventory management activities because inventory is the second largest
expenditure in business. Inventory policy is related to the process that includes recording,
identification and accounting all inventory and equipment that help business to manage inventory
in efficient manner (Wei, 2019). Inventory policies in retailing and manufacturing organisation
plays important role in attaining organisational goals and objectives with great efficiency and
effectiveness. As inventory is the most important aspect in business model that help organisation
to run operations in proper manner. Tesco uses various inventory management policies and

techniques that enable business to manage its inventory and convert it into finished products as
well as provide them to consumers for generating profits. Implementation of policies helps
business to control organisational production cost. Proper inventory tracking helps the brand to
fulfil customers’ orders on time with efficiency. It enables business to manage their inventory in
efficient manner so it utilizes their resources in efficient manner.
Respected business gets various benefits through executing inventory management policies such
as organisation can reduce its labour cost by improved inventory planning as well as controlling
techniques that help business to attain determined operations in efficient manner. These
technique includes time spent counting stock and transportation of stock. Tesco uses intelligent
inventory planning and control solutions that enable respected organisation to reduce labour-
intensive activities (Xie, 2019). Low labour and inventory management techniques facilitates
organisation to maximise its performance and profitability ratio. If organisation manages its
inventory in efficient manner than it also limits employee mishandling as well as guide them to
perform business operations in efficient manner and also ensures optimum utilisation of
resources. Management of inventory enables helps organisational inventory manager to take
effective and quick decisions that lead business to towards attaining determined business goals
and objectives in proper manner.
Inventory management policies of occupancy allow managers of TESCO to focus on
inventory planning and also on reducing cost of company through maintaining inventories in
effective manner. It is also creating values for different factors like loading as well as
commonalities that is exhibited through management and control of inventory. These factors
allow managers to control cost of storage of inventory and also for increasing profit of company
with using management and control of inventories that is emphasising on importance to
inventory management. These policies allow company to make balance among inventories that
allow company to have sufficient inventories in organisation and also allow them to saves cost of
excessive inventories.
Production cost is defined as all direct and indirect cost of business that is related to
manufacturing a product and providing services to customers. It includes various expenses such
as raw material, labour, suppliers and other general overhead. Tesco reduces all these expenses
through managing inventory in proper manner that ensures that raw material and other resources
are available at the time of production that reduce production delays as well as make sure

optimum utilisation of resources. Tesco adopts inventory management policies and software that
enhances organisational productivity and performance that lead business towards growth and
success. It helps business through reducing business production and operational cost because
through inventory management, inventory or raw materials are available at each stage of
production. Availability of inventory reduces organisation production cost. Inventory
management enable business to take better inventory and resource forecasting decisions that
ensures that proper inventory and resources are available at the time of production. Tesco
maintaining its inventory through its automated system that helps business to manage inventory
and other resources in proper so they can be utilised in production process. It saves
organisational money by reduce product shortage or overstocking. It also facilitates organisation
reduce product spoilage through using FIFO and LIFO system. These inventory management
policies ensure that production department has sufficient amount of resources so they can
proceed upon that and produce quality products and services that satisfy all needs and demands
of consumers. Implementation of these policies helps organisation to reduce operations as well as
production cost because all activities related to production conducted in smooth manner.
Apart from that there are various other benefits of inventory management that enables business
to perform defined operations in efficient manner and reduce overall production cost as well.
Better management of inventory facilitates business to provide better services and quality
products to customers that retain them with organisational for longer period of time (Zhang, and
Hu, 2017). Availability of raw material or resources ensures the continuity of production
operations and enhance overall productivity of organisation. Inventory management helps
business to reduce the duplication of ordering of stocks that reduces Tesco’s overall cost that
directly enhance business profitability and provide competitive advantages. Management of
inventory facilitates business to run its operations in smooth manner, control organisational cost
of as well as help to keep customers satisfied and lead business operations towards growth and
development.
CONCLUSION
As per above report it can be concluded that operations are the activities that are
conducted by the organisations for converting raw material into finished products that is served
to customers. Now these days, business uses operation management techniques that help
business to manage all operations in efficient manner so business can attain its determined goals

and objectives on time with efficiency and effectiveness. Business also implements operations
scheduling techniques that enable business to formulate effective planning and strategies that
helps business to attain its determined goals and objectives in efficient manner. Organisation
applied knowledge layout planning and work system process on organisation enable business
management to run operations in efficient manner. Inventory management is important for
organisation because it facilitates business to handle inventory requirements and arrange then
accordingly so all operational and productions activities are run in proper manner. Inventory
management plays significant role in organisation because it ensures availability of inventory
during production process that led smooth operations and reduce unnecessary cost regarding
inventory delay or overstocking.

REFERENCES
Books and Journals
Reinhardt, J.W., 2017. Current status of operation and management of dental school
clinics. Journal of dental education, 81(8), pp.eS50-eS54.
Li, R., Xiao, D. and Pan, F., 2019, July. Study on evaluation method of expressway operation
safety risk based on grey incidence analysis and AHP. In 2019 5th international
conference on transportation information and safety (ICTIS) (pp. 698-704). IEEE.
Baumgarth, C., 2018. Brand management and the world of the arts: Collaboration, co-operation,
co-creation, and inspiration. Journal of Product & Brand Management.
Vy, N.M., 2021. Ineffective operation of K Company production lines in vietnam.
Mak, D. and Choi, D.H., 2020. Optimization framework for coordinated operation of home
energy management system and Volt-VAR optimization in unbalanced active
distribution networks considering uncertainties. Applied Energy, 276, p.115495.
Çubukcu, A., 2018, December. A new multi-criteria decision making approach in the evaluation
of innovative ideas. In 12th International NCM Conference: Challenges in Industrial
Engineering & Operation Management.
Dedeić, N., Hrustemović, D. and Ovčina, A., 2019. Satisfaction of nurses with operation
management and functions and reflections on satisfaction of health service
beneficiaries. Medical Journal, 25.
Jing, H., Huaping, Y. and Haiyan, Z., 2017. Urban rail transit operation management.
Tang, X., 2019, February. Application of the Big Data Technology in the Chain Operation
Management. In The International Conference on Cyber Security Intelligence and
Analytics (pp. 345-350). Springer, Cham.
Wei, H.B., 2019. A Comparative Study on the Differences between the Operation Management
and Operation of Engineering Ships and Operational Ships Based on the Definition of
Transportation. DEStech Transactions on Social Science, Education and Human
Science, (ermis).
Xie, X., 2019. Research on the Operation Management of Hema. World Scientific Research
Journal, 5(7), pp.97-101.
Zhang, X. and Hu, P., 2017. The Countermeasures Research About the Operation Management
Personnel Quality in Nuclear Power Unit Safety. In New Energy and Sustainable
Development: Proceedings of 2016 International Conference on New Energy and
Sustainable Development (NESD 2016) (pp. 561-567).