Operation Management (Mba-502)

Topics: Supply chain management, Inventory, Management Pages: 5 (1589 words) Published: February 7, 2008
Operation Management
Kudler Fine Foods has several important issues in terms of its operation management. Kudler made the decision to start contracting with local growers of organic produce. Continuing to find new ways to increase business and gain an edge over the competition is important in the market. Developments may include merger and acquisition activity involving continuing price competition, growth of take-away food products and services, change in operations and continuing consumer concerns about food safety and ethics (Shears &Hillier, 2000). This paper will identify those business processes at Kudler that could be affected by this change in the operation. It will also discuss Kudler supply chain, quality control tools and performance standards that Kudler would need to put in place to ensure the effectiveness of its operations. Once Kudler has identified the above categories for change, create internal planning teams to address each issue and find solutions for implement. Supply Chain

"The idea of supply chain management is to apply a total systems approach to managing the entire flow of information, materials, and services from raw materials suppliers through factories and warehouses to the end customer" (Chase-Jacobs-Aquilano, 2005). Kudler makes every effort to provide customers with total satisfaction. They offer a varied selection of gourmet foods and plan to offer organic products by local growers. She does this by monitoring gourmet food stores, going to conventions and visiting the competitor's websites. Once she finds new and interesting items, Kathy introduces them to the staff during her operations review meetings and allows her managers to give their opinions of the new product. Then the best decision will be made that Kudler can achieve a significant competitive advantage by the way they configure and manage their supply chain operations. The department managers can measure supply chain performance such as inventory turnover, cost of goods sold, average aggregate inventory value and weeks of supply. When purchasing organic produce, Kudler needs to set up proper inventory system that would allow checking three stores' inventory levels to avoid waste. This will allow Kudler to launch risk-hedging supply chains with the organic growers. By utilizing risk-hedging strategy, it will allow the company to pool and share resources in a supply chain so that the supply cannot be disrupted (Chase-Jacob-Aquilano, 2005). Each of the three department managers determines requirements for the items their department sells and places purchase orders directly with suppliers who would give them a better price on the products. It is the responsibility of the department managers to obtain the best price, quality, delivery possible, and verify all orders in terms of whether they received the correct items and in undamaged conditions. The alignment of supply strategy and product characteristics is extremely important to the operational success of Kudler Fine Foods. Business Processes

Chase-Jacobs-Aquilano refers to "a process is any part of an organization that takes inputs and transforms them into outputs that, it is hoped, are of greater value to the organization than the original inputs." There are many factors management needs to consider the processes involving purchasing, quality control, inventory management, forecasting, merchandise selection and operations systems. It is essential to develop a uniform process for capturing and elevating the best new ideas to carry organic produce but also assess them in the context of their impact for the future. This information must be available to the entire cross-functional product team, allowing stakeholders and management to view information across all products. Understanding how Kudler Fine Foods processes work is vital to their business. "The objective of a business process is to identify delays, transport distances, processes and...
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