Restaurant Pricing Tactics

Inflation is hitting restaurants especially hard on the supply side, as they are paying more for ingredients and increased labor costs. From the revenue side, customers impacted by inflationary pressures on food and gasoline are reducing their spending for eating-out.

The combination of increased costs and reduced revenues serves to reduce restaurants’ profit margins.

Restaurants have to seek ways to maintain customer traffic, while still maintaining profit margins. Two techniques gaining popularity are dynamic pricing and barbell pricing.

Dynamic pricing, also referred to as […]

Holiday Shipping Capacity Is Ahead of Demand

Shipping companies including the U.S. Postal Service, FedEx, and United Parcel Service will have enough capacity to achieve on-time deliveries this holiday season.

Consumers were enticed to shop early to take advantage of early holiday sales, shop more in stores, and moderate spending to counter inflation.  As a result, shipping volume was reduced, and shipments were spread over a longer period.

Nevertheless, shipping companies are maintaining a buffer of excess capacity of 10 million to 20 million parcels each day to meet […]

Target’s Seasonal Aggregate Planning

Target is responding to the nationwide labor shortage with a two-pronged approach in aggregate planning for its retail services.

To prepare for a surge of demand during the holiday season, in addition to hiring new employees, Target is allowing its current employees to work extra hours or shifts.  In addition, its employees can choose times or swap hours with other employees.


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Toyota’s July Production Shortfall Due to Parts Shortages

Facing the challenges of semiconductor shortages and parts supply disruptions, Toyota lowered its July production forecast in Japan by 50,000 vehicles.

Toyota is expecting part shortages to be stabilized later in the year and will run additional shifts to meet the projected annual vehicle production volume of 9.7 million.

Read previous OM in the News posts about effects of the semiconductor shortage on the automotive industry, including some creative solutions


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