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help in connection with the operations of their stores, employees or payroll issues, Paychex will provide the legal services without needed additional retainer fees to be paid.The staffing of individual locations is kept at a relatively low volume with 2-4 employeestypically available to help incoming customers. This can vary by location and peak scheduling times do play a factor. However, with new customers, the input/output ratio is quite low becauseof the job and product design. Tim Bowen states that the average new customer will spend one hour during their visit to the store in order to find the perfect product selection to fit their specificneeds. In order for this ratio to hold true, there must be enough input in labor hours to support the output that will result in a ratio of at least 1 per hour. For example, 2 employees can only handle 2 new customers per hour in order to follow the Alohma training protocol. This can possibly lead to a loss in revenue if customers are not willing to wait so long. However, Alohma is counting on the benefit of long-term customers (who do not take as long to service) to continually return and sustain the business. Sam Salaymeh informed me of the high importance put on staffing to the best possible numbers as to avoid these potential losses in revenue.InventoryInventory is controlled by utilizing excess storage space to have a considerably high volume of products on hand and ready for sale. Alohma believes in having this excess space in order to meet with their continued expansion strategy. A JIT system is not something that meets 9 | P a g e
Field Exercisethe Alohma business model’s needs. Since there are no expiration dates to concern themselves with, this model is easy to manage logistically. Alohma meets their demands through previous week forecasting models and stocks products in an effort to meet those same sales figures. Dailysales totals are uploaded to Alohma’s HQ every night. Every Monday and Tuesday Alohma uses the previous week’s sales figures to forecast the demand for the forthcoming week. On Wednesdays the warehouse prepares and packages inventory orders for all stores based on these figures. For locations outside of the Omaha area (locations that require shipments to receive product), stores are stocked at an additional 20% rate to cover any excess demand that might be encountered. Local locations receive their shipments via a company van every Wednesday morning. Inventory orders for the distant locations are shipped via overnight delivery every Wednesday. Additionally, Alohma does accept pre-orders, special requests and back orders from their customers.Supply Chain ManagementThe supply chain of Alohma begins with an order of products from their suppliers. This includes the base of their e-juices, nicotine solution and the e-cigarette devices. After products are received, Alohma uses their internal equipment to infuse the nicotine into the juices, which are in turn stored in one gallon containers on shelving units in their warehouse.