Operations Management
Outline how a strategy of globalization will impact on a policy of pursuing economies of scale advantages
Globalization is now becoming a critical aspect in regards to business operations. Due primarily to technological advances, and economic development, a more interconnected world is becoming standard. As such companies that rely primarily on fixed assets will depend more heavily on economies of scale to reduce the unit cost of each unit produced. Due to globalization, it is not uncommon for fixed assets to be structured geographically in a multitude of countries. By having operations domiciled in various countries, companies can further their cost advantages through economies of scale. Global auto manufactures use this technique extensively in the production of their vehicles. Auto manufacturers rely heavily on fixed assets to produce and assemble vehicles. These assets irrespective of production will cost the company. As such Toyota has incentive to spread the fixed costs associated with production and assembly across as many vehicles as possible (Silvestre, 1987). To accomplish economies of scale, the company has strategically placed production facilities around the world to further enhance its cost advantage. For example, Mexico may assemble engines, while an Asian territory may assemble the transmission. Through specialization of labor, and increasing production capacity around the world, Toyota is a better able to achieve economies of scale by reducing the per unit costs of it vehicle components. Many global firms around the world, which rely extensively on a high fixed cost structure, use this technique to achieve lower costs for consumers (Jones, 2010).
2) Evaluate the strategies of lead capacity, match capacity and lag capacity for a retail outlet
Lead capacity- Lead capacity would allow retailers to hold extra inventory above their forecasted level of sales. Through the use of lead capacity retailers can insure that available quantities of merchandise are available when needed. This strategy is particularly useful during the holiday season, when sales are at their peak. To ensure, that popular assortments are readily available, a lead capacity strategy could be implemented to help facilitate sales. The downside of such a strategy however, is that it depends on forecasts which could be in error. In the event that products are not in demand or forecasts are too high, retailers will be saddled with inventory holding costs that could dampen profit for the company.
Match capacity- Match capacity, when used effectively, would match inventory with forecasted demand. When done properly, retailers can avoid the costs associated with holding large amounts of inventory. These costs could include theft, obsolescence, insurance costs, and more. When products are not selling properly, these costs have the potential to be substantially high. By effectiveily matching capacity with demand, retail companies can avoid these costs, while also generated excess sells. The downside of this method is that consumer demand is very unpredictable. Fashion trends change, product offering change, and economic circumstances change. As such, by not having an inventory “cushion” retailers risk lost sales by not having a highly demanded product in stock when the consumer demands it. In addition, consumers through technology now have the option of simply going elsewhere for their retail needs. By not having the product in stock, retailers may potentially lose profitable long-term customers to rival competitors who do have the proper assortment.
Lag capacity- Lag capacity only adds stock when demand for them is fairly certain. From a financial perspective, this method reduces the error and ambiguity associated with forecasting. Through this method, retailers would only add or increase inventory in an item, when demand for that item is certain to produce sales. This method is predicated on hindsight rather than foresight, which presents problems for retailers. Depending on the severity of the lag, consumer preferences may have changed by the time the items arrive within the store. In addition, much like the matching capacity method, retailers could risk losing customers to more nimble competitors in the industry.
3) Discuss the location decision of an organization with which you are familiar in terms of supply-side influences and demand-side influences
An location strategy for the retailer Macys is very dynamic. For one, the retailer recognizes the growing influence of e-commerce on sales and overall profitability. In response, the store has been hesitant to open new brick and mortar stores in a traditional shift. Instead, the retailer is creating distribution networks from its existing assortment of stores. This decision was primarily influenced by demand side aspects. Consumers now demand flexibility in their shopping experience. They like to shop how and when they choose. With the internet, this concept is compounding on itself as consumers now have ample choice in regards to their overall purchasing decision. To help facilitate the shopping experience, Macy’s is using what it terms as an Omni-channel strategy to create locations that are always around the customer. By making stores distribution networks, the customer can be serviced more efficiently through e-commerce. In addition, inventory levels are reduced as products are shipped from stores with a very low sell through instead of those with high sell through. This provides incentive from a supply side perspective as Macys reduces inventory storage costs while also generating sales (Halkias, 2009).
4) Rank the four sites in order of their total weighted points score for suitability for the proposed location
Factor
Weight
A
B
C
D
Const. Cost 0.1
9
6
8
7
Oper. Cost 0.1
9
8
9
8.5
Pop. Density
0.4
28
36
32
30
Conv. Access 0.2
15
16
18
18
Parking
0.2
12
14
17
15
Sum
73
80
84
78.5
Rank
1) Site C
2) Site B
3) Site D
4) Site A
5) Using the center of gravity method, determine the best location for plant D. To serve its customers using the facility location and yearly demand shown below
Facility
X Coordinates
Y Coordinate
Demand
A
B
50
C
75
X
1460049.528
Y
3320024.764
References:
1) Halkias, Maria (July 28, 2009). “Macy’s tailors stores, including new Fairview location, to match local tastes.” Dallas Morning News. Retrieved May 1, 2010
2) Jones, Andrew (2010) Globalization. Key Thinkers. Cambridge: Polity Press, John Wiley & Sons. ISBN 074564322
3) Silvestre, Joaquim (1987). “Economies and Diseconomies of Scale.” The New Palgrave: A Dictionary of Economics 2. London: Macmillan. pp. 80 — 84. ISBN 0-333-37235-2.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Literature
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Finance
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
Computer science
Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!
Psychology
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
Nursing
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Sociology
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
Business
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
Statistics
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Law
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
Reasons being:
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!
