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Operations Management
Kudler Fine Foods (KFF) is preparing to add locally grown organic produce to broaden the wonderful variety of produce that they offer to their customers. This addition will mean that KFF will need to look at its operations structure and make changes to continue the growth and service that it currently exhibits. KFF must address which business processes might be affected, changes that might be needed in its supply chain and what quality control tools and performance standards it will use to effective manage its operations. What seems like a simple addition for KFF could require major changes throughout the organization.
Affected Processes
A number of processes may be affected by the addition of local organic products by KFF. Three of these procedures at KFF, purchasing, forecasting and inventory management are very closely related and definitely would be affected.
Currently the only standard in the purchasing process is the form used by all the stores. The department managers at each store are responsible for obtaining the best price, quality and delivery possible for each item. Better purchasing processes will be even more important for the organic produce, because no preservatives are used and having the correct amount to sell through quickly is very important. Achieving more uniformity and cost reduction might involve the hiring of a purchasing manager who is responsible for making sure that purchases are handled properly and in the most cost effective manner.
Inventory processes will be affected as well and it will be very important to properly manage the levels of inventory. KFF will most likely need to use a new ...