Question

Business: Operations Management:

How does operations management affect what you are able to buy? How does it affect seasonal merchandise such as christmas items?

Answer 1

The term Operation Management refers to the administration of business activities to enhance the efficiency level of employees within an organization. It is concerned with each and every activities of an organization starting from picking of rawmaterials to delivery of goods and services at the customer point. Operation manager also held responsible for maintaining a balance between cost and revenue.

Operation management affects buying decision of a customer. Let's check what factors affect buying decision of a customer. Before buying a product a customer mainly check price, quality, product design, product features, performance and variety. All these factors are thoroughly checked and analyzed under operation management. After studying the market for a good, a product is designed, made with high quality materials, loaded with handsome features and finally make available to the customer at a reasonable price. If the price of the product decreases due to low cost of production, its demand increases than the normal and vice-versa. Operation management covers all the strategies and operations of the organization which is linked to the product and buying decisions of a buyer.

Seasonal merchandise such as christmas items enables the retailers to earn higher margins. So it is necessary to have a better planning for the optimum sale of seasonal items. Planning for a regular product is not same as seasonal product. Operation management team needs to check each and every action before displaying seasonal items in a temporary stall. First, we have to plan a location and size of the location for a seasonal business. The location should be at the hub of the marketplace and its size should be large enough to display the items widely. Second important decision to take is quantity of stock, too much of stock leads to waste after the season and too little stock results in products running out before the end of season, results in less sales. Operation management includes good forecasting of business and right allocation of goods so that heafty amount of revenue can be generated. Other factors to be pointed out here that the design, quality and price of the christmas items. Good quality, eye-catching designs and a reasonable price for a product always proves to be a lucrative business for all. So a retailer must choose good designs, give emphasis on quality and set a reasonable price that his competitor can't beat. All these plannings and implementations are done in operation management to ensure everything is in order.