Operations Management: Analyzing Supply Chain Models and Performance

This report delves into the intricacies of operations management, focusing on the critical role of supply chain models in determining a business's financial performance. The analysis explores how supply chain strategies, encompassing the movement of raw materials, information, and finances, directly influence key financial metrics like Return on Assets (ROA). The report examines the implications of well-structured versus poorly constructed supply chain models, highlighting their impact on cost reduction, productivity, and overall organizational success. It presents findings from various research studies, hypothesis tests, and regression analyses, emphasizing the importance of factors such as product characteristics, supply chain competitiveness, and the chosen supply chain model. The report also discusses the significance of data collection, surveys, and the use of formulas to assess supply chain effectiveness, ultimately aiming to provide insights into how businesses can optimize their operations and achieve financial stability through strategic supply chain management.

Running head: OPERATIONS MANAGEMENT 1
Operations management
(Author’s name)
(Institutional Affiliation)

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OPERATIONS MANAGEMENT
Journal of Operations management provides the student with the actual experiences and
quality original data that affect the day to day operations as well as learning of operating
management systems. In operating systems, the document analyzes supply chains (Elsevier,
2018). The concept (supply chain) deals with the movement of raw materials, information and
finances from production to distribution. Researches have been carried out to explain how supply
chain model affect the financial performance and position of any esteemed organization. These
model is an important part of the supply chain management. Several tests, hypothesis and
investigations were done by authors to relay information about supply chain that can easily be
comprehended by people (Inderscience Publishers, 2010). The authors try to explain how supply
chain management in any particular business will help reduce costs while increasing productivity
by using Journal of Manufacturing: http://www.journals.elsevier.com/journal-of-manufacturing-processes/ Journal of
Operations Management:.
Main purpose of the investigations
Authors’ main aim is to show that proper or appropriate supply chain models, will lead to
increased overall return on the assets. Oppositely, poorly constructed supply chain models lead
to low ROA and poor performance. According to, (Lovins, 2013) improved operations and
reduced costs are the main objectives of the supply chain management models. From the
investigations, hypothesis and tests done in proving the significance of supply chain models,
examples had to be developed to provide proof of the findings. In any management department,
fulfilling all the needs of a supply chain model may be such a hard task that needs a lot of effort
and concentration (Maeda, 2011). The authors of several books of literature on Operations

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management provide information on how to accomplish this task and improve the organizations
financial position and performance.
The regression analysis result of all companies is as follows:
A lot of assessments and measures had been developed to purify the findings and the
results though challenges were experienced during the research process (Going Green, 2017).
The findings from the researches indicated that proper supply chain managements will have a
positive impact on the financial performance leading to success in the organization.
Key questions
The major question in the Journal of Operations management is to determine whether
supply chains have a positive or negative impact to the performance of the organization. All the
hypothesis, analysis and results concentrate on these question. Findings obtained try to validate
this question (Emerald Insight, 2018). To acquire high precise findings that explain this question
in a better way, adequate data must be collected. Additionally, performing surveys will help
validate the research and efficiently answer the question. The main factors that will help explain

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the above question will include product characteristics, how competitive the supply chain
prioritizes and the supply chain model used.
(Maeda, 2011), indicates that the performance of any developed organization will depend
on the above factors. The competitiveness of the supply chain will help improve the operations in
the organization. In case an organization has a poor supply chain models then it will not have
efficient operations and will be doomed to financial crisis (King, 2013). For all those people
who are trying to learn or are eager to learn operation management then it is essential for them to
understand the factors that contribute to success in an organization with regard to supply chain
models.
Vital information
The figure below highlights the hypothesis test which is the most significant part in the
study of OM. The managers have the chance to provide answers that is based on their previous
experiences in the organization. The data collected both secondary and primary is essential in
this study. The figure below tries to show how the supply chain models will match the supply,
demand uncertainty or and the supply chain responsiveness (Lovins, 2013). From the figure
hypothesis will be studied appropriately by the use of the questionnaires. These studies will then
help determine the uncertainty in demand, supply, and intensity of competition and the
responsiveness of the supply chain.
Figure 2 shows supply chain strategy with product nature

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Source: (Calvo, 2006).
To determine if the reasoning is accurate, then a formula will be developed to help obtain
standard deviation and the main for every item. The formula is SCF = SDU – SCR, which helps
compare important factors and also help determine whether an organization supply chain model
is good or not (Wagner a, 2012). Additionally, the first figure will help draw the second figure
which is a scatter plot. The second figure helps obtain analysis in the organization.
It is also essential to note that return on assets is essential in determining financial
situations in any organization (Calvo, 2006). If it is assumed that supply chain models will
determine the financial position and performance of any firm, then this supply chain model is
incorporated into the firm’s performance strategies.
Main implication
From the analysis and results obtained, the regression model indicated a misfit which had
a negative impact on the financial impact as per the average return of assets (6.490%) which
proofs the hypothesis above. Therefore, it is evident in the Journal of Operations management

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that supply chain model has either a positive or negative impact on the financial performance of
any firm.
The above information is the most vital implication that is trying to be explained in this
analysis and findings. Additionally, from the discussions and implications then it will be
essential to say that the post hoc analysis will help validate the above hypothesis.
Key concept
The main concept in the Operations Management Journal is to indicate how the supply
chain model plays an important role in the financial performance of a business and hence it is
good to determine its benefits in making strategies of a firm that will integrate supply, demand
and supply chain designs. According to, (Horváthova, 2011) it is a fact that internal and external
consistency will be improved to ensure a maintained supply chain model and determine demand
and supply. In case there is a misfit in the supply chain model, any company will have an
opportunity to improve performance by combining supply chain processes.
Main assumptions.
To critically show the main assumptions in the article, then we compare two industries in
an economy. The textile and the beverage industries. It is clear that products from the Beverage
industry are occasionally used each and every day while there is always new methods and
designs of producing textile products (Going Green, 2017). It is also essential to note that
Beverage goods are easy to cope with any market uncertainties since they have a lower stock out
rate as opposed to products from the textile industry. It will be noticed that textile industry goods
have a control to their supply chain process.

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The good implications
In this article, it will be essential to say that most firms should not concern themselves
whether any supply chain model is good or bad. Important researches made will offer other
conclusions but this may not be the case with other people who have different views.
It also to be noted that a better supply chain fit will lead to higher return on assets and
thus improving the market share (Elsevier, 2018). Hence, the benefits from the two implications
will help in developing a prosperous economy.
Hence, all these researches helps improve the supply chain management.
The bad implication
Organizations with poor supply chain models may also have poor productivity and low
financial performance as compared to those organizations with good supply models (Lovins,
2013). In case entrepreneurs fail to study these supply chain models then they will not positively
contribute to developments and hence collapse.
Main points
It will be essential to identify how these supply chain models affect the financial
performance of organizations. In these article we target audiences by clearly giving out
hypothesis, tests and implications (Maeda, 2011). Though there are several limitations in the
process of operation management, it is the basis for better business performances and operations.

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References
Calvo, R. (2006). Systemic criterion of sustainability in agile manufacturing. International
Journal of Production Research, 4-17.
Elsevier. (2018). Operations Management. Journal of Operations Management, 8-11.
Emerald Insight. (2018). Operations & Production Management. International Journal of
Operations & Production Management, 9-12.
Going Green. (2017, December 13). Green Manufacturer. Retrieved from
www.greenmanufacturer.net: https://www.greenmanufacturer.net/
Inderscience Publishers. (2010). Manufacturing Research. International Journal of
Manufacturing Research, 23-29.
King, K. (2013). Strategic innovation priorities for sustainable manufacturing in Australia .
Melbourne: Future Manufacturing Flagship.
Lovins, A. (2013). Reinventing Fire: Bold Business Solutions for the New Energy Era. Colorado:
Rocky Mountain Institute.
Maeda, M. (2011). The Complete Guide to Green Building & Remodeling Your Home:
Everything You Need To Know Explained Simply. Atlantic: Atlantic Publishing.
Petra Horváthova, M. D. (2011). Operations Management as Practice of Organizations'
Strategic Management in Relation to the Environment . Czech Republic : Technical
University of Ostrava.
Stephan M. Wagner a, P. T.-R. (2012). The link between supply chain fit and financial
performance of the firm. Journal of Operations Management, 4-8.