ABSTRACT
In this chapter, you will learn the importance of the production/operations function of a small business. Producing quality tangible goods or services in the most effi cient manner will enable fi rms to survive and prosper. Accordingly, we will look at the defi nition of the product/operations function and the way fi rms determine how to make products in the most effi cient manner. Attention must also be given to the question of supply chain management and how to manage inventory and the production function so that inventory costs are at a minimum and the fl ow of goods or services is properly monitored. As the production of goods and services are intertwined with quality considerations, we will also examine this topic.
