Summary: The purpose of this assignment is to discuss two topics related to operations management and relate them to business examples. I have chosen to discuss both inventory management and capacity management. The business examples both come from the airline industry. I discussed inventory management as it relates to the maintenance area of ​​British Airways in Cardiff. They recently implemented a fully online inventory system. In this way they increased their efficiency and significantly reduced costs. They can now maintain more than one hundred aircraft each year compared to seventy-six before. I also discussed the limitations of inventory management by also discussing their limitations. I talked about performance management as it relates to the low-cost airline Easyjet. Their unique yield management system means they are able to get the most cost 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 link 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 regarding inventory management is the British Airways maintenance facility in Cardiff (BMAC) and their inventory management for maintenance, repair and operations (MRO) stock at the their basis. Theory: It is a necessary part of any question because there is a difference...... middle of the paper ......0 Number (3): pp.14-9.Kimes, S.E. (1989). Yield management: A tool for capacity-constrained service businesses. Journal of Operations Management, volume 8, number (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) Inventory Management Case Study. Available at: http://cms.buckandhickman.com/Documents/VMI/B&H_-_British_Airways_Case_Study.pdf (First accessed 10 April 2014) Yield Management Case Study. Available at: http://cws.cengage.co.uk/page2/students/cases/8-2.pdf(First accessed 10 April 2014)