Identify where performance gaps exist in your operations process by employing the Gap Model. How to improve the demand forecasting of the prepared foods department of a supermarket company?During the last few years, ABC has been having issues with the “prepared foods” department, which has X in total people as headcount (X operators and one supervisor). They are distributed to cover the X shift the store has per day. There are two sub-departments, prepared meals and prepared soups & salads. Each one could be sold in two presentations, packaged or self-serve buffet-like. Likewise, every meal prepared and packaged by the operators in the store only has an average of X of useful life and must be thrown away a day before its expiration. Among the issues in the department, five affect the performance of the store and category. The lack of production planning: the preparation of every meal is not based on sales, demand, days of the week, weekends, or seasonal campaigns. Instead, it is based on the raw materials the department has in stock that day or if there is any stockout of a specific meal. Food waste: Not having any planning process for the production of meals and supply of raw material take the department to have skus with stock out, others with insufficient stock to meet the customer's needs and others with overstock. The ladder is the principal cause of food waste in the department. Stock-out of many SKUs: It is not only the lack of raw material and production planning that causes stock-out of prepared foods SKUs. It is also the lack of containers to either pack or serve the customers, and it is becoming a regular thing. Low customer satisfaction: Having complete gondolas is one of the main goals of a store operation in a supermarket. Having stock out for the customer to see will only result in losing a vital sale but also could mean losing a customer. ABC has many customer complaints because of the lack of stock of many SKUs in the prepared foods department. Lack of employee motivation: Having to deal daily with angry customers and receiving poor treatment can seriously affect an employee's performance and behaviour. It can lead to a loss of motivation and even a higher employee turnover.

Identify where performance gaps exist in your operations process by employing the Gap Model. How to improve the demand forecasting of the prepared foods department of a supermarket company?During the last few years, ABC has been having issues with the “prepared foods” department, which has X in total people as headcount (X operators and one supervisor). They are distributed to cover the X shift the store has per day. There are two sub-departments, prepared meals and prepared soups & salads. Each one could be sold in two presentations, packaged or self-serve buffet-like. Likewise, every meal prepared and packaged by the operators in the store only has an average of X of useful life and must be thrown away a day before its expiration. Among the issues in the department, five affect the performance of the store and category. The lack of production planning: the preparation of every meal is not based on sales, demand, days of the week, weekends, or seasonal campaigns. Instead, it is based on the raw materials the department has in stock that day or if there is any stockout of a specific meal. Food waste: Not having any planning process for the production of meals and supply of raw material take the department to have skus with stock out, others with insufficient stock to meet the customer's needs and others with overstock. The ladder is the principal cause of food waste in the department. Stock-out of many SKUs: It is not only the lack of raw material and production planning that causes stock-out of prepared foods SKUs. It is also the lack of containers to either pack or serve the customers, and it is becoming a regular thing. Low customer satisfaction: Having complete gondolas is one of the main goals of a store operation in a supermarket. Having stock out for the customer to see will only result in losing a vital sale but also could mean losing a customer. ABC has many customer complaints because of the lack of stock of many SKUs in the prepared foods department. Lack of employee motivation: Having to deal daily with angry customers and receiving poor treatment can seriously affect an employee's performance and behaviour. It can lead to a loss of motivation and even a higher employee turnover.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 42P

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