Summary: The purpose of this assignment is to discuss two topics related to operations management and relate them to business examples. I chose to discuss both inventory management and capacity management. The company examples both come from the airline industry. I discussed inventory management as it relates to the British Airways maintenance area in Cardiff. They recently implemented a completely online inventory system. In doing so, they increased their efficiency and significantly reduced their costs. They can now maintain more than a hundred aircraft each year, compared to seventy-six previously. I also discussed the limitations of inventory management while discussing their limitations. I mentioned yield management regarding the low-cost airline Easyjet. Their unique yield management system allows them to get the most out of every flight because they have segmented their customers into two distinct groups: business and leisure. I also discussed the theory and components of Yield Management and tried to relate it to Easyjet. Inventory Management: The topic I will talk about in this section is inventory management. Inventory defined as “the standard accumulation of resources in a processing system”. (Slack 2011 p. 198) Inventory is an important part of any business because the cost of holding inventory can be very high. The case study I am looking at in relation to inventory management is that of the British Airways Cardiff Maintenance Facility (BMAC) and their inventory management for their maintenance, repair and repair stock. operations (MRO) at their base. Theory: It is a necessary part of any business because there is a difference...... middle of paper ......0 Issue (3): pp.14-9.Kimes, SE (1989) . Performance management: a tool for service businesses with limited capacity. Journal of Operations Management, Volume 8, Issue (4): pp.348-363Slack, Nigel and Stuart Chambers. Operations management. 6th ed. Harlow: Financial Times Prentice Hall, 2010. Print.Slack, Nigel Essentials of Operations Management / Harlow, England; New York: Financial Times Prentice Hall, 2011Case Studies: Inventory Management Case Study. Available at: http://www.cribmaster.com/case_studies/bamc_b&h_cribmaster.pdf (first accessed April 10, 2014) Case study on inventory management. Available at: http://cms.buckandhickman.com/Documents/VMI/B&H_-_British_Airways_Case_Study.pdf (first accessed April 10, 2014)Performance Management Case Study. Available at: http://cws.cengage.co.uk/page2/students/cases/8-2.pdf (first accessed April 10 2014)