Shop Around the Clock ‘Til Christmas

Shop Around the Clock ‘Til Christmas

January 1, 2018
Ross L. Fink, Ph.D.

Article Title: Kohl’s, Toys R Us to Stay Open Around The Clock until Christmas

Author of Article: Kelly Tyko

Date of article: December 21, 2017

Source URL: https://www.usatoday.com/story/money/nation-now/2017/12/21/kohls-toys-r-us-stay-open-around-clock-until-christmas/965081001/

This USA Today article describes how Kohl’s and Toy R Us will remain open 24 hours a day leading-up to Christmas.  This is the fifth year that Kohl’s has been open 24 hours a day ending at 6:00 pm on Christmas Eve.  Toys R Us will be open for 63 hours straight ending at 9:00 pm on Christmas Eve.  These stores are hoping to attract the last minute shopper and compete against online shopping by providing added convenience by offering longer shopping hours.

Discussion Questions
1. What operations management issues does staying open 24 hours a day present to Kohl’s and Toys R Us?

Guidance: One obvious issue is staffing the store.  This substantially increases the number of hours they’re open, and the number of customers in the store.  Overtime staffing for regular staff needs to be determined, plus the addition of temporary workers.  Another tactic could be to off-load some of the shopping to online, with in-store pickup.  Inventory Continue reading →

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Best Buy’s Holiday Sprint

Best Buy’s Holiday Sprint

December 20, 2017
Dr Ross L. Fink

Article Title: Best Buy’s Distribution Centers Work Around The Clock For Holiday Sprint: Best Buy’s Logistics Will Soon Be Tested By a Crush of Shoppers

Author of Article: Kavita Kumar

Date of article: November 21, 2017

Source URL: http://www.startribune.com/best-buy-s-distribution-centers-work-around-the-clock-for-holiday-sprint/459221513/#1

This article looks at preparations that Best Buy is making to handle the rush of Black Friday and Cyber Monday sales. Best Buy is anticipating a 15% increase in online sales for Thanksgiving Day. Online sales currently represent about 13% of Best Buy sales, with the percentage increasing. Best Buy is also facing added stress to their distribution systems as they compete with Amazon. They are working to match Amazon’s two-day shipping, and in 40 marketplaces are offering same day delivery, again in response to Amazon. They are accomplishing this through three-party delivery firms.

Best Buy is using several tactics to meet this increased demand on distribution centers. The article mentions increased inventory, pre-packaging items for shipment, increasing capacity by operating 24 hours a day versus normal 10-12 hours a day, and the use of software to determine from where the items are shipped.

Discussion Questions
1. Should Best Buy be competing against Amazon by offering 2-day delivery, Continue reading →

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