2 Replies of 150 each
39196Reply to Jed…
I currently work for the largest healthcare group purchasing organization (GPO) in the United States. At the core, my company helps its member organizations obtain the goods and services they need to provide safe and affordable care to the communities they serve. In order for our members to do this effectively they need to be able to manage their supply chain effectively. One of the chief goals of any supply chain team is to ensure they have the supplies they need when the care team needs them; while at the same time minimizing cost.
One way they can do this is to ensure they do not have a lot of supplies sitting on the shelf for a long period of time. Another way they can help control costs and ensure the product is available is to take advantage of quantity discounts made available by the manufacture or distributor of the particular product. Our textbook describes quantity discounts as “price reductions for larger orders offered to customers to induce them to buy in large quantities”. In other words if you buy more then you need now, you will get them cheaper. This sounds like a great deal! For a supplier this allows them to move their inventory much faster, but it does potential impact their profit margin. Similarly, the Buyer is able to reduce costs over the long term, but in the short term their profit margin will decrease as they absorb the initial up front cost of acquiring a larger amount of goods then they need at that given time.
Stevenson, W. J. (2021). Operations management (14th ed.). McGraw-Hill Education.
Tamplin, True (Mar 9, 2023 Quantity Discount Retrieved From: https://www.financestrategists.com/financial-advisor/quantity-discounts/ Links to an external site.
Hanks, Gerald (quantity Discount Vs. Linear Pricing Retrieved From: https://smallbusiness.chron.com/quantity-discount-vs-linear-pricing-72387.html Links to an external site.
Reply to Diane…
I have learned how to be more efficient with the information I gather in order to make the business more successful while also making happier customers along the way. Also, this course has made me look at a business and ask the questions where they are and where they want to be which forced me to see a side of business that I never thought of before. I have also learned that my roll in operations management is a key role to a business being successful. Another thing I have learned is no matter how successful a business is there is always room for improvement. As an operations manager you have to be proactive and fix the areas in the business that is dragging down the business as a whole. Today with the internet being part of business as operation management we can use the data from algorithms through statistical and mathematical models (Choi, Wallace, & Wang, 2017). As with change comes problems but also we must marvel at what God has allowed us to experience 2 Peter 3:18 says, “But grow in the grace and knowledge of our Lord and Savior Jesus Christ. To him be the gory both now and to the day of eternity. Amen” (ESV).
Choi, T.-M., Wallace, S. W., & Wang, Y. (2017, December 28). Big Data Analytics in Operations Management. Retrieved from Wiley Online Library: https://onlinelibrary.wiley.com/doi/full/10.1111/poms.12838
Crossway Bibles ESV. (2023, March). Growth. Retrieved from OpenBible.info: https://www.openbible.info/topics/growth
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