Final answer:
Operations and Supply Chain Management encompass procurement, production, inventory management, transportation, logistics, and customer service. Advancements in technology, transportation methods, and labor policies are crucial for improving supply chain resilience and efficiency. Differentiating between supply and quantity supplied is essential for understanding market dynamics.
Step-by-step explanation:
The main areas of Operations and Supply Chain Management (OSCM) can be broadly categorized into several core functions such as procurement of raw materials, production or manufacturing processes, inventory management, transportation and logistics, and customer service.
Proper management of operations and supply chain is crucial as it impacts the creation, distribution, and management of key natural resources, which in turn affects the location and patterns of movement of products, money, and people. By using advanced technology to streamline logistics, introducing efficient transportation methods and vehicles, and establishing robust policies, businesses can maintain resilient supply chains even during national emergencies.
For example, the implementation of new technologies can help developing countries produce more refined products quickly, increasing their presence in the market. In addition, by focusing on labor rights, companies can integrate ethical considerations with supply chain management, ensuring a committed and secure workforce, both through international agreements and national policies. Taking both supply and demand into consideration, a balanced approach to managing the OSCM leads to sustainable and efficient business practices.
It is also important to understand the difference between supply and quantity supplied. Supply refers to the total amount of a product, like milk, that is available for purchase at any given price, represented by the supply curve on a graph. In contrast, quantity supplied is the specific amount of milk that producers are willing to sell at a particular price, indicated by a point on the supply curve. Changes in the quantity supplied occur as a movement along the supply curve, while shifts in supply result from changing market conditions such as production costs or number of suppliers.