Starbucks Weakness

Topics: Economic order quantity, Customer, Mathematics Pages: 3 (945 words) Published: July 19, 2013
Individual coursework
Starbucks, as we all know, are one of the globally popular companies, but like everything else, it has its own weaknesses. Here I will suggest some solutions to help solve the problems faced in their inventory management processes. Starbucks follows the EOQ model, which involves heavy calculations and predictions. Without the formulas and some basic information about the demands from customers, the cost of placing orders, and other variables, the calculation of the EOQ model will not be able to reach its optimal potential. From this, collecting the accurate information for the calculations is vital, the company has to acquire reliable and timely sources. Conveying surveys, searching data online from sources like Google Analytics about the spending behavior, and carrying out research are among the ways to collect vital info from current and potential customers. By doing this, it can help determine the annual demand of the company, which can help solve or at least ease on the uncertainties of demand. Having skilled or experienced employees/ staff is also crucial as they are considered by some are the most valuable assets of a company, which they experience customer feedback firsthand. These ‘customer feedback’ are useful to further improve the customer of said company. Listening to employee feedbacks can also help to execute certain operations, selling products to customers, and how to do things better (Vos 2013, p. 1). Other than that, having good employees that takes charge of the calculation, for example the calculation of the EOQ model, are vital because they are needed to calculate the best possible figures of ordering. Through this, it can help narrow down the EOQ model predictions. Also, they can help predict through experience without completely relying on the calculations. Calculation based on the EOQ model also requires constant set of data. For example, the demand for the year has to be known (which has been covered on the second...

References: 1. Bob Reiss. (2010). Build a Good Relationship With Suppliers. Available: Last accessed 15th June 2013.
2. 2013. Economic Order Quantity Model (EOQ). [online] Available at: [Accessed: 16 Jun 2013].
3. Vos, L. 2013. People: The Most Important Asset of Any Company. [e-book] Georgia: p. 1. Available through: Georgia SBDC [Accessed: 16 Jun 2013].
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