How do customers judge the service of a supermarket? 2. Indicate how and why each of the following factors are important to the successful operation of a supermarket (a) Customer satisfaction (b) Forecasting (c) Capacity planning (d) Location (e) Service Design and delivery

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

SFM Inc. is a premier grocery chain, headquartered at Noida operating over 70 superstores across India,  employee strength is 23,000 and annual sales is over Rs. 2.0 billion. SFM has a strong reputation for offering best quality products and excellent service. Through a combination of market research, trial and error, and listening to customers, SFM has grown into a successful organization. Many of the company’s superstores measure 1lakh sq. ft., 2-3 times the size of average supermarkets. Employee strength of a superstore is 500 - 600. Individual superstores differ in terms of actual size and some special features. Aside from the normal features of supermarkets, superstores have large bakery, fresh produce, pharmacy, floral and cards sections. The bulk foods department provides customers with the opportunity to select desired quantities from a vast array of food and nonfood items. Customers can wander among stations as they decide what to order.

 

Each department handles its own ordering. Factors such as pricing, special promotions, local circumstances are taken into account. Superstores typically receive one truckload of goods per day from the main warehouse. The short lead-time greatly reduces the time duration an item might be out of stock. SFM values its employees and invests an average of Rs.7000 to train each new employee. Employees learn about stores operations, importance of good customer service and how to provide it. Employees are helpful, cheerfully answer customer questions or handle complaints. Employees are motivated through a combination of compensation, profit sharing and benefits. Quality and customer satisfaction are foremost at SFM. If a customer is dissatisfied with an item and returns it in part or full, the customer is offered a choice of a replacement or a refund. If the item is a SFM brand item, quality control teams determine causes of the problem and suggest corrective action.

 

Questions : 

1. How do customers judge the service of a supermarket?

2. Indicate how and why each of the following factors are important to the successful operation of a supermarket

(a) Customer satisfaction

(b) Forecasting

(c) Capacity planning

(d) Location

(e) Service Design and delivery

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.