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Another recommendation would be to explore another warehouse/HQ style location in their Kansas City market. Since the warehouse in Omaha doubles as a store, this shows that theycan cut costs in facility maintenance by using one central store hub effectively. Tim Bowen 13 | P a g e
Field Exerciseexplained that their Kansas City location was opened with the hopes of expanding their presence to over a dozen stores within that market. That assumption comes from an environment scan of the Kansas City area and the sustainability that a certain number of stores could potentially have.Large overnight shipments of inventory to multiple stores are a huge expense, and the closer theyget to their Kansas City expansion hopes, the more expensive it will continue to be. One central receiving location in that territory is recommended so that they can utilize a company vehicle for delivery similar to the Omaha locations.Everything about the Alohma operation is very ambitious and their total operations blue print contains aspects that are very un-precise as well as others that are very specific and detail-oriented. In a way I admire some of these oversights. There is an obvious disregard for the break even-point benefit of having all of their products pre-packaged and pre-produced. The total cost of buying these items in the bulk rate required to meet demand would likely be less than the effort invested into producing it in house with professional grade equipment (especially considering the number of manufacturers in the world today). However, the qualitative aspects of their brand name are so important that they are willing to bypass those opportunity costs in lieu of higher quality control. This dedication to product design and quality is the focal point of the entire Alohma brand. 14 | P a g e
Field ExerciseAppendixField Exercise QuestionsService and Product Design:What was your initial model for the products and services you were going to be offering?How has the layout of these designs changed over the years?What external factors did you initially base your product and services on?Are there weaknesses in the design of your competitors that you wanted to capitalize on?Quality Management:What steps do you take to manage the quality of your products?What steps do you take to manage the quality of your services (customer service)?How do you ensure these steps are taken when the service is being provided by someone other than yourself?Please give me an example of control limits you set on a particular product – what aresome ingredient contents that will cause it to be rejected or accepted for sale.Process and Capacity Design:How do you limit expansion so that you are able to realistically manage the current workflow and production flows?