Bsa 502

Week 4: Operations Paper

Jamie Franklin

BSA 502

April 15, 2013

James Francisco PhD

Week 4: Operations Paper

History

Kudler Fine Foods was established in 1998. The owner, Kathy Kudler has a passion for gourmet foods and found that her neighborhood did not have any shops available to buy her desired specialty food and wine. She currently has three stores open and visits each store frequently. Kathy does all the ordering for all three stores on a weekly basis. She orders in bulk for all three locations in order to lower the price she pays. The products come from local, national, and international suppliers. Fresh, organic fruits and vegetables are purchased locally from distributors that ensure the highest quality products. The dairy products are local and the meats are form all over the country. Wine and cheese is imported through national and international wholesalers.

Purchasing

Kudler Fine Foods only allows purchases from approved vendors. There is no purchasing department, but all three stores follow the same procedures. The department managers determine the amount and items that are orders. The daily sales are uploaded and the purchasing program runs. The sales data is combined with the inventory data and the business rules are applied. Some of the business rules are, but not limited to:

• Quantity on hand

• Quantity of discount purchases

• Number of days since last order

The results are reviewed and approved. The purchase orders are then released to the vendor, managers, and general accounting. Purchase order forms are mailed, handed, faxed, or e-mailed (if acceptable) to the sales person. The purchase order form is the tracking and financial document for an order. Kathy’s policy is that a stock out should not occur more then 2-3 times a year. The desired customer service level is 95%; this means that 95% of the time a customer will find the item they are looking for in stock.

Forecasting

Most of the products are...