1.0 Introduction
Operation is a part of a business organization that is responsible for producing goods or services. Goods are physical items that include raw materials, parts, final products such as smart-phones, and automobiles. Services are activities that provide some combination of time, location, and psychological factors. Examples of good and services are found all around us. We have selected the company Reebok whereby it has all the elements stated above. Reebok is a worldwide athletic footwear and sports apparel company, operating as a subsidiary of Adidas since 2005 (Adidas acquired all the unsettled Reebok shares and completed the deal valued at $3.8 billion). Reebok produces fitness, running and CrossFit sportswear including jersey
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For manufactures, supply is the raw materials that the company buys to make products. The supply should be dependable and cost-efficient, with the business buying the best resources at the best prices. Many businesses have supply management strategies to locate the best price for this end. At Reebok, they use sustainable and recycled materials. The most commonly used sustainable materials are recycled polyester, recycled rubber, organic cotton, and non-mulesed wool for apparel and leather. Reebok source various recycled materials such as inlay soles, textiles, metals, plastics, packaging and rubber. Moreover, Reebok does not source raw materials from any endangered or threatened species, as defined by the International Union for Conservation of Nature and Natural Resources (IUCN) in its red list. The policy also prohibits using leathers from animals that have been inhumanely treated, whether these animals are wild or …show more content…
Most businesses will only accept a certain level of defects or problems ¬- some prefer not to accept any at all. This improves product flow and solves minor problems that could become major issues later. At Reebok, monitoring the quality of products on all levels of the supply chain through testing prior to production, close cooperation with suppliers throughout the manufacturing process, random testing after retail delivery, open communication about defective products and quick settlement of product liability claims when necessary to ensure the quality is there on every product. Not only monitoring production line, Reebok also monitor restricted substance in their product. Restricted substances are those that cause harm or are suspected to cause harm to human health or the environment. Their approach is that suppliers must avoid the use of possible harmful substances to ensure that our products are environmentally