Operation Management

Release of the new PSP from Sony in Asia, Europe and the U.S. was planned for the holiday shopping season at the end of the year, but due to encountered problems console will be available only in one region, commented the president of Sony Computer Entertainment in America. Thus, analysts fear that the delay in release of PSP could weaken the company’s position in the market of portable game consoles, because of the fact that recently chief rival company Nintendo has released in the U.S., Japan and Europe, its own portable console 3DS.

In conclusion, we can state that Sony Corp. should repair own plants, reorganize existed ones and look for new ways of development and strategic perspectives to get back to full capacity in the nearest future.

Question 2:

Improving the efficiency of business in any industry is impossible without timely communication and optimal sequence of operations for the entire production chain of the company – from customers to warehouses, distribution centers, production units and suppliers. Thus, we are going to talk about a supply chain with an aim to foresee its future.

Supply chain – is a sequence of processes and information to deliver products or services from suppliers through manufacturing and distribution directly to consumers. (Nagurney, 2006). Determination of the supply chain is a key notion in logistics and it is necessary to say that supply chains can be divided into external and internal. Internal supply chain consists of different sub-companies, starting with supply (procurement) and ending with subsection customer service. Also internal supply chain includes operations associated with purchase of reserves, transportation, storage, use in the manufacture, and delivery to customers. External supply chain, in its turn, is a network of organizations that are involved in recycling of materials, raw materials and gathering and processing of information about products and services in addition with the consumption of products and services (Boone & Ganeshan, 2002).

Thinking about the future of supply chain management we can say that it should consists of several steps. The first step is optimization of modern supply chain management that supposes the improvement of enterprise efficiency; there should be implemented automation of planning and management of material and information flows. This becomes more evident with the extensive use of the integration properties of communications systems, using Internet and Web-based technologies. The next step is improvement of the system of continuous registration of results that promotes rapid introduction of changes in both the construction and the realization of the production processes and product distribution. And for the conclusion it is necessary to say that employees involved in the new logistics (information logistics), moved on to activities to broaden the scope of logistics, including its non-traditional elements, further integration with other functional structures of firms and the adoption of management philosophy, which deals with a single integrity of strategic planning, corporate and marketing strategy.

Works cited:

Boone, T. & Ganeshan, R. New Directions in Supply-Chain Management: Technology, Strategy, and Implementation. AMACOM, 2002.

Japan Earthquake – Related Industry News Update. Compiled by Advanced MP Technology, April, 2011. Available at http://www.amptevents.com/Japan_Earthquake-Related_Industry_News_update.pdf

Nagurney, A. Supply Chain Network Economics: Dynamics of Prices, Flows, and Profits. Edward Elgar Publishing, 2006.