Assignment 3 Target

Assignment 3 Questions and Answers

 What type of product flow do they use? 

 Target style of product flow is using the batch product flow. The products that they cell are everyday products which must be are purchased and taken the same day being that they are a retail store.

What type of customer order do they process? 

Because targets products are mostly every day things Target would need to keep items on stock. This would have to mean that the way for of customer order would have to be Make to Stock. Consumer can purchase items either through the internet or shop at a local retail store. When employees pick up an online order they would have to get the products from its on stock. Consumers must order online or shop at a retail location for purchase of products.

  

Which cell does Target fall into in the process characteristics matrix?

Target falls into batch and make to order. the store will carry different product lines based on the target location . Customers in some demografic areas will demand different products. Target will only open stores with full markets or pharmacy departments if they will profit based on the demand and the competition in that area.

Preparation for Holiday Shoppers

Factors Which Influence Target's Process Selection

When deciding which type of process selection to use, Target considers what type of market they are selling to. Target chooses to use a batch process because they are a retail store. They are selling to customers which look to get value for their money. This corporation must consider the demographic of its customer depending on the area each store is opening in. There are Target Greatland stores, Super Targets, PFresh Target stores, and Urban Target stores. Depending on the model of these stores, there is either greater square footage, more third company stores inside, deli and produce sold, or the store layouts is modeled to fit in unique locations.


Target will also accommodate their process selection based on the time of year. They market seasonal products, which they only sell at a specified time slot throughout the year. Products geared towards Back to School/College, Halloween, Holiday, and Summer are sold in Target's Seasonal location inside stores. The store will only purchase these types of products to be sold during these specific times.


This Corporation must also be mindful about purchasing the right quantities of certain items. There are times of very heavy store traffic during the sales year, in which Target must order and stock the correct amount of products. Black Friday is the busiest shopping day of the year in the United States. Target must prepare inventory for these items which they forecast will sell well during these time of high sales.


It is essential for Target to be up to date on trends in areas from home design to clothing. They need to follow tends in entertainment and technology as well. Target must also order the correct amount of inventory for these trendy items as well as market items, which have expiration dates as well. Most importantly they must compare their selling ideas and innovations with their competitors. Target must sell and present the products their customer wants in a clean and friendly environment, keeping true to their Target Promise.


 

Can they adopt any of the mass customization methods discussed? 

 Yes, Target can adopt to two of the mass customization. According to the moduler production, Target also orders a large quantity of products to meet customers’ needs. Target has an online website where customers can order merchandises and have their products shipped to them within 2 business days. In reference to Fast Changeover, each of target products has a bar code on it, which is call the SKU number. The SKU number help identify the item and the price of the item. The SKU number also gives customers an easy and quick way to check the price of a specific item by using the "self prices checkers"  found around the store. Target can adopt to those two forms of mass customization.

Target's Inventory Managment

 

Expectations for Holiday Season

Ratio's and Returns for Target Corporation

        Target is one of the most advanced companies in inventory management. The company manages both retail stores and an online store. Inventory is managed for Target through 4 different import warehouses, there are 27 regional distribution centers, and for internet sales; 3 fulfillment centers. The company's primary focus is getting the right amount of inventory to where it needs to go, and in a timely manner. Target measures the sales volume of each store, and uses this information to sort and time their inventory. Factors such as the region's market demographic, holiday times, climate, back to school dates, and the volume of the store will effect how and when inventory is assorted. 

        In each store utilizes point of sale data. A list of what each store is derived every hour so that the shelves can be restocked immediately. The store will reorder stock based on percentage of the merchandise sold. Overnight stocking of stores in performed every night. A truckload of inventory comes daily to each store. There is about a four hour lead time from the store's order until it is received.

Company info for Target

http://www.target.com/ 

     Target opened in the early 1960's with new trendy way of marketing discount retail. The idea was to change the way consumers viewed shopping for discounted goods. Today Target has almost 1,750 stores in 49 states. They have extended to include stores which have grocery stores, photo centers, pharmacies, and food restaurants. The store is actively involved in the community. They support education, arts, and social services. The company promotes a diverse environment, encouraging innovation through suppliers, team members, and the total shopping experience. Target's mission statement is at follows: Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less.^® brand promise.