Operations management is at the heart of business success, it is where all of the planning, setting of standards, policies, and practices are implemented to create a companys goods and services. Operations Management is where inputs like raw materials, equipment and labor are converted into outputs (products and services). Much of Chapter 21 is dedicated to Inventory Management and Operations and Purchasing Policies and Practices; using terms and concepts from the reading explain why the two topics listed above are so important to the effective management of business operations.