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Operations Management
In today’s market companies are searching for a competitive edge. Society today consumers are asking for healthier, more environmentally friendly foods. Kudler Fine Foods has responded by deciding to contract produce out to local growers of organic foods. However, in order to implement such a change, Kudler has to re-evaluate business processes and make corrective changes. This paper will discuss what business processes are affected, how the supply chain is changed, what quality control tools are needed, and what performance standards are measured.
Business Processes at Kudler
Chase, Jacobs, & Aquilano (2006), defines a process as any part of an organization that takes inputs and transforms them into outputs. Kudler Fine Foods is starting to contract local growers of organic produce. By doing this, Kudler will have to evaluate current business processes and make necessary corrective changes. One process that Kudler will need to correct is Inventory Management.
The process of inventory management can be considered as a “make-to-stock” process. According to Chase, Jacobs, & Aquilano (2006), Make-to-stock process produces products that can be delivered quickly to the customer. For instance, Kudler department managers evaluate current demand for produce and place orders to keep inventory at the proper level.
Inventory Management for a gourmet food store like Kudler is crucial in order to provide the customer with the quality and quantity they demand. At Kudler department managers are responsible to ensure that the levels of inventory are high enough to meet the demands of customers. The current process requires Kudler to forecast future ne ...