chapter  1
6 Pages

Introduction and Purpose

Within the broad eld of business administration, the area of business operations encompasses the activities required to produce goods and services and bring them to markets and customers. Executing the associated production and distribution activities requires material inputs as well as physical and organizational infrastructure. Physical infrastructure is comprised of the facilities (e.g., factories, warehouses, retail stores) and equipment (e.g., production and material handling equipment, inter-facility transportation vehicles) necessary to transform material inputs into production outputs that provide value to customers. Organizational infrastructure consists of the human resources required to ensure the execution of operations activities, as well as the functional responsibilities and relationships among the organization's members.