A production/service system refers to any system that processes resources (e.g. capital, materials, human skills and knowledge) in order to produce goods and/or services. Thus, production and service systems exist in virtually all kinds of companies, and some examples of such systems are factories producing toys, banks offering financial services to customers, hospitals offering surgical procedures to patients, and restaurants offering food services to customers. This course aims to equip students with the necessary skills for analyzing and improving the operations of production and service systems. The emphasis will be on determining the relations and tradeoffs among key performance measures such as throughput, inventory level, customer service level and cycle time in a system, based on the Little’s Law and basic queuing theory. As a side benefit, these relations will provide the science to understand the advantages and disadvantages of various management techniques such as MRP, JIT, pull production systems and TQM.