BUS-101 Lecture Notes - Lecture 44: Operations Management, Retail
Document Summary
The customer is not part of the manufacturing process. Customers satisfaction with the service can be influenced by how the facility was designed // aesthetics (color, lighting schemes, temperature ) Main purpose = motivate customers to spend money. Most common principles used in designing layouts: These can influence behavior of the customers (impulse buys), however, the retailer still must fulfill the customers needs (when, where, what, and in the quantities they demand) = manages the transformation of inputs (labor and materials (customers)) into outputs (products and services) Responsible for customers getting what they want and leaving with a positive impression. Used to be known as production management as it once focused purely on the manufacturing process. Equally as complicated for service businesses as manufacturing businesses // due to the customers. Operations management decision-making: // five key goals of the operation management function: