ABSTRACT

Operations management involves production planning and supply chain management, and must be viewed as a total system. The chapter discusses the importance of production planning given the unique characteristics of food and agribusiness companies. The perishability and seasonality of many agricultural products mean that agribusiness firms have different considerations as they consider long-term decisions like plant location, plant capacity, or plant layout. Agribusiness firms trade-off decisions favoring large plants with lower operating costs versus smaller flexible plants that can meet the needs of nearby consumers. Process and job design focus on the efficiency and safety of the individual operator.