OPERATIONS MANAGEMENT-INTRODUCTION

The Makeoffee production systemThe Makeoffee production system

Preparing coffee in the morning is a nice example of production systemPreparing
coffee in the morning is a nice example of production system
?Coffee machine?Electricity?Operator PrepareWater,filter,coffeeDrinkable coffee
When somebody prepares coffee in the morning, she/he performs different operatio
ns and makesdifferent decisions. Here we will review these operations and decisi
ons and draw a parallelbetween the problems the coffee maker faces and those fac
ed by a production manager inhis/her company.
Organization of This Text:Part I Part I Operations ManagementOperations Management
??
Intro. to Operations andIntro. to Operations andSupply Chain Management:Supply C
hain Management:Chapter Chapter 1 (Slide 5)1 (Slide 5)
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Quality Management:Quality Management:Chapter Chapter 2 2 (Slide (Slide 67)67)
11--22
trading range in the20 to 25 region duringNovember and December 1999.The stock
penetrated resistancet o w a rd the end of the year oni n c reased volume, but s
oon fell back down below 22. The stock again attempted to rally, with pricereach
ing 25
1
/
8
Depends entirely on your setup. Mine is based on support and resistance. I've ve
ry clearly defined what I want to see there.
If I don't see it, I don't take the trade. If I do see it, I do take the trade.
Without exception. There are hundreds of hammers,
shooting stars, gravestones, dark cloud covers, no demand bars, upthrusts, shake
outs, etc, etc, etc in any given chart. It's up to
the market student to determine which to pay attention to and which to ignore. I
pay attention only to those which occur at support
or resistance. So whether or not the ease in selling pressure at support and the
shift to buying pressure would cause you to cover or
not is beside the point unless that is part of your setup. Since it was and is p
art of mine, it's my reason to cover. And adding to my
short is not an option since that's not part of my setup. What price does therea
fter is of no importance to me unless I've entered a
long trade. But I didn't. I was done. As to "temporary", the trader has no way o
f knowing whether the shift in balance is temporary or
not. He has to act based on what's in front of him. As to whether a lack of "sup
ply", or, more accurately, selling pressure
(unless you're talking about something that actually has a supply, like stocks)
equals demand, or buying pressure, it depends on
what's happening with price. If selling pressure eases and buying pressure take
s up the slack, but no more, price will sit right
where it is. If selling pressure eases and buying pressure increases, there will
be less resistance to a move up in price, which is
what happens in the first bar I've arrowed, as well as the second. As to what ha
ppened afterward, price went pretty much nowhere, but,
again, I didn't care. I entered where I was supposed to, rode it all the way dow
n to support, and exited where I was supposed to.
There were no further setups for me that day, though I'm sure there were plenty
of setups for other people. And if all this seems
oversimplified, I'd have to agree. That's exactly what you have to do in your se
tups and your trading: oversimplify. Make it as simple
and straightforward as possible so that you know exactly what to look for and e
xactly what to do if and when you see it. No panic.
No euphoria. You see it, you act. You don't see it, you play solitaire. If I may
, the following is from the "journal" post to my blog:
Therefore, focus on the setup.
One
setup. Determine its characteristics. Define it so specifically
on Dec. 30, but it didso on diminishing volume. Thisfailed rally completed the s
etupsequence for a No. 2 upthrust.Another similar setup developedin February and
March 2000. Asell-ing opportunity arose when price began to decrease past the h
alfwaypoint of the trading range in m