Question

A computer manufacturer seeks to cut costs by designing an inventory system that reduces the number of finished products in stock due to overproduction and to set in place a production schedule that better matches customers' orders. This is an example of ____.

a) Operations Management
b) Scientific Management
c) Production Management
d) Inventory Oversight
e) Inventory Analysis

Answer 1

Answer: Operations management

Explanation: In simple words, operations management refers to the process of monitoring business practices so that the labor and materials could be converted to goods and services as efficiently as possible. This efficiency will ultimately increase the profit of the organisation.

In the given case, the computer manufacturer is making changes with the inventory system so that overproduction could be reduced and customer satisfaction could be increased. Hence he is doing so with the goal of maximizing profit.

Hence from the above we can conclude that the correct option is A.