Chapter 13-Operations Management: Operational: List and discuss at least two ope

Question

Chapter 13-Operations Management: Operational: List and discuss at least two operational decisions retailers may face. Then provide an answer to the decision you pose. (For example, an operational decision a retailer might have to makes whether or not to extend hours of operation during busy holiday seasons if other retailers are extending their hours. An answer to this decision could be to not extend hours of operation because then customers might come to expect extended hours of operation at other times of the year.. This might impose additional costs on the retailer and decrease profits, etc.) 5.

Explanation / Answer

The two operational decisions the retailers may face are as below

We would have the “happy hour” type of sale during the slack time of the day . For eg. It is usually observed that during noon hours, the footfalls in the retail shops are less especially during the week days. To increase the footfalls, we would introduce a sale which would include the sale of atleast one additional item at a discounted cost. This item that would be selected would be of low profit but high volume based business which would ensure that the impact on profit is less at the same time, high volume would be sold.

We would introduce queuing theory techniques in this. When the billing counter in the retail shop is flooded with customers during rush hours, we would initially make announcements in the retail shop for the customers to buy all the items at one go and then come to the billing counter. Also we would make different lines of customers at the billing counters, in a way that the customers who would buy large quantities would be on one side and the ones with the less quantity will be on the other side. While the customer billing of large quantity customer is going on, we would offer the customers an option to have light juice or something to drink so that they are patient when the billing process is going on.

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