Operation Managment case study Example | Topics and Well Written Essays - 3250 words

Operation Managment - Case Study ExampleIn deed Lee (1) points out that the key differentiator between poor performing and high performing companies is the ability to increase inventory turns.Inventory management can be a daunting travail for a mass retailing business with hundreds of products coming from a total array of suppliers. Such a challenge can be even greater when the suppliers are located in different echelons of the organisations distribution network. Usually, most retail chains often use central distribution centres which arising products from the suppliers and distribute them to the retail stores. Though this proves effective in most cases, if not well managed and executed, it may result to excess inventory in terms of senseless safety stock, stock outs, and product allocations that are not optimal (Lee 2). This paper analyses stunners hypermarkets inventory management to identify a flunk and propose a re-engineered improved operation.LuLu Group operates some of the biggest and well performing hypermarkets, Lulu Express and shopping malls in the United Arabs Emirates and in different cities within the Gulf region (Retail Business Review 1). The hypermarkets which are the retailing division of EMKE Group, a multinational company dealing in a wide array of sectors, prides itself in providing high quality consumer merchandise across the Gulf region through its 103 stores. Like any other mass merchandising store, LuLu hypermarkets offers a wide array of consumer goods and services under one roof (LuLu Hypermarkets 1 Hemalatha and Sivakumar 52).LuLu hypermarkets deal in a wide array of products ranging from market place products, apparel products, baby products, cleaning products, beverages, health and beauty aids, electronic products, pet supplies, seasonal merchandise, home furnishings and home decor, kitchen appliances, tools and power equipment, office supplies, outdoor living, gardening products, as well as footwear. All these products ar e from a wide array of brands, in different