Bus 411 Operations Managment CAse Study

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Provide a detailed description of how  the item below could be resolved. This must include (1) operations management technique from the text to be applied, (2) method of application, and (3) method of evaluating success of the plan. Support your discussion with outside sources. This section must be 2 pages . Yall are assigned  one problem. Two-3 references at least.  

 romans 12 double spaced .

 Two pages each. Double spaced in romans 12 this should be an easy assignment.




Major Issues in Wegman’s Operation 





Wegmans markets should be extra careful that they stick to their USDA approved schedule. Wegmans had a huge blunder in January 2016. They changed their production schedule and processed chicken outside the USDA approved hours. This meant that none of the chickens from the thousand pounds that was involved was ever inspected. This caused a massive recall across six states. The USDA issued a class 1 recall, this meant that there was a good chance that eating the chicken would result in getting sick or even being fatal (Associated Press, 2016). This type of recall has happened before, some examples are the peanut butter with the Salmonella found in it or the ground beef that e. Coli was found in (Magno, Cassia, & Marino, 2010).

A recall on a product can affect a company on so many levels. It causes a lot of damage to the name of the company that has the recall. This can take many years to overcome. Every time someone looks at the news for a week, there is the company name being smeared due to one mistake in production scheduling. How much time can this take to recover? This doesn’t even count the loss of money from the chicken itself. Now it can’t be sold and/or has to be refunded. I can’t imagine how much extra labor and marketing resources it took to communicate with the customers affected. Then consider the fines that the USDA can impose. All in all, the food markets lost a lot of money as well as its store brand taking a hard hit being in a recall (Magno, Cassia, & Marino, 2010).Steps need to be taken to insure that mistakes like this one do not happen ever again. 

Many of this company’s stores are referred to as “Super-Stores”. This means that in square feet, they can be upwards to 100000 square feet. That is more than double most regular sized grocery stores. In the last few years, there has been a leaning towards building smaller, more homey, feeling grocery stores. Companies like Trader Joes and Aldi have witnessed a lot of profits from opening these type stores (Tuttle, 2014). There are many problems associated with opening and operating these giant super stores affectively. For one, it is very expensive When competing with the smaller stores, Wegmans will notice that with the added cost of running the giant stores, cuts have to be made in discounts to hold at least a small bit of margin and not take a loss. This is where the smaller stores could get them on price. It clearly takes a lot more labor, electricity, initial cost of such large buildings than it would a smaller one. Recently there has been a trend in the population to more go to meals and snack foods. This leads to more shopping trips but less bulk items of food. Customers don’t have to fill their carts all the way up each week to make it through to the next. Trends like this lead to more food staying on the shelf for longer amounts of time (Haddon & Jargon, 2017). This could not only cause waste but holding a lot of inventory longer there by reducing profits. For some reason the millennials are the ones that tend to look for foods that are cheaper and more convenient (Haddon & Jargon, 2017).

Wegmans supermarkets being known for being superstores will make it more challenging to enter some of the urban areas. Some of the super stores have chosen to scale down in urban areas to attract more of the millennials. Walmart has done this with its smaller grocery only stores. Things to think about when opening a new super-store would be it will be very difficult and tie up a ton of resources to open new stores in New York or Manhatten. 

Haddon & Jargon, J. (2017, July 31). Supermarkets Face a Growing Problem: Too Much 

Space. Retrieved from https://www.wsj.com/articles/supermarkets-face-a-growing-problem-too-much-space-1501498802

Magno, , Cassia, ., & Marino, . (2010).Exploring customers’ reaction to product recall messages: the role of responsibility, opportunism and brand reputation. In Proceedings of the 10th Global Conference on Business & Economics (pp. 15- 16).

Tuttle, B. (2014, June 02). Your Grocery Store May Soon Be Cut in Half | Money. Retrieved 

http://time.com/money/136330/why-your-grocery-store-may-soon-be-cut-in-half/from  

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