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In: Operations Management

Question 1 Stephen wants to cultivate perishable goods in Sogakope; a business which he has saved...

Question 1

Stephen wants to cultivate perishable goods in Sogakope; a business which he has saved money for. Discuss five(5) post-operative problems he is likely to encounter.  

Solutions

Expert Solution

Stephen if he wants to invest his money saved into perishable goods and start a business into it in Sogakope or anywhere around he must know the key issues affecting it with research on pre-operational and post-operation to handle the business at the optimum level.

Perishable products/goods are those kinds of goods that are likely to decay/die if it's not taken proper care on the management of it in various operations of marketing issues, finance & costing issues with other operations till it reaches the consumers who are the main reason for starting the business or purpose to generate the revenue or profits out of it. Examples of such goods are milk, ice-cream, yogurt & vegetables.

- Stephen, before he cultivates such business must & should address the following 5 post-operational issues/problems, may encounter to make the business successful:

  1. Harvesting, handling challenges of perishable products on post-harvesting activities which Stephen must look after before he adopts such business as any loss of the persible products due to injury, scratches, minute damage may affect the overall product purchase and in-turn affect the operational performance of the business. Harvesting them naturally with proper nurturing to handling it without any damage is important to get the business done.
  2. Sorting & cleaning is another post-operational issue Stephen must assess as by checking the availability of such products at the place called Sogakope with an understanding of where he is going to get the goods at minimum cost is key. Adding on to it there must be fair means of management in sorting the goods & cleaning them for the better business where can be a game-changer for Stephen to invest in.
  3. Transportation & distributional challenges are other post-operational issues Stephen must address for to make the business achieve its success. Loading & unloading with proper means of the availability of the transport of such goods, cost to manage such transport, and checking the optimal distribution channels to make the cost to a minimum and maximize the share of profitability in controlling the operation is key to survival in this type of business.
  4. Storage issues are another major post-operational challenge under perishable goods that Stephen must keep in mind for it. As such goods don't survive for long so managing proper storage facilities, with quality, temperature, packaging, & other environmental factors are the key areas Stephen must assess to operate into such business. Any loss of it or improper management will affect the inventory and also impact the overall business at all means.
  5. Environmental challenges- Finally the most important attention Stephen must give for such type of products is keeping in check with environmental conditions the product is set. In addition to the management of transport quality, storage quality understanding each product as at what environmental setting it has to be kept is key to manage the loss/damage that may occur. This will impact the other operations if it's not controlled post of it, in turn hampering the cost & inventory as well as overall business at all means.

Thus, Stephen if he really wants to invest his savings into this type of business must & should assess the overall factors affecting pre & post challenges of it with an extensive research depending on the availability, scalability & nature of it. To survive in perishable product business is not everyone cups of tea it needs proper channel of modeling/assessing the key operational challenges or complexities that may arise for to make the business successful.


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