CASE PROBLEM 6.1 A Manager\'s Woes or the discount store, Zelmart, for the past

Question

CASE PROBLEM 6.1 A Manager's Woes or the discount store, Zelmart, for the past two years. It's time for his an- spend his afternoon. There's got to be a logical way to solve this, thought Kyle. He walked back to his office and wrote down the facts as he knew them Kyle Peschken has been a manager f nual performance review, and Kyle would Like to make a1. Customer service managers (CSMs) must approve big impression on the corporate staff. Walking through the store, he makes a mental note of which departments all checks over $100, and over 50% of purchases in electronics exceed $100 need to be straightened, which ones need to be reorga-2. It's more efficient to stage CSMs at the front of the nized, and which employees he'd like to schedule during the week of his review. And then he sees it-blocking the aisles, creating commotion, and looking very unprofessional-the long line in the electronics depart- store by the 12 checkout lines 3. It takes an average of 10 minutes for the CSM to reach electronics after being paged 4. Because of cost controls, the number of CSMs is ment. It's time to confront Chris, the sales clerk limited to two per shift, and there is no room in the budget for additional hires of any type. "Chris what's the holdup here?" "I'm waiting for a manager to approve this $120 check. 5. Electronics must be purchased in the electronics And then I have to show this lady a digital camera from the display cabinet. She's been waiting half an hour, and department (to prevent theft) 6. Store policy allows customers to check out other then. ..." items at the electronics counter if they are making purchases in that department. (This makes sense especially if the customer wants to write a check for the entire purchase.) "Alright Chris... I can help out for a little while..." Two hours later, Kyle exited the electronics depart- ment disheartened. That's no way for a store manager to (Continuedl

Explanation / Answer

*The possible solution that kyle could employ against its inefficient department is as follows.

- Because of the budget issue he cannot hire the extra CSM but I think with few expense he can hire the some extra sales clerk, after that he can merge any other department having nearly similar specifications to that of electronics and also having high sale with the electronics department without changing its location from what electronics department location was I.e central. By doing this kyle can establish more than two checkout counters in whole place, as we know that 50% of the check payment are more than 100$ and require CSM approval so we get that if in any department CSM is most sought after that is electronics dept. Hence kyle can locate company's one of CSM at checkout counters of the new department ( electronics + any other suitable department in which sale is high). By doing this the left one CSM can be located at between the checkout line counters of remaining departments where the sales is low. Also by using this method there will be sufficient number of sales clerk to attend each and every walk-in customer effectively thereby he can save cost or the cost optimizstion can be done to the company subsequently the fund raised from this can be used for the safety & security measures to overcome the theft issues. The average time a customer spends shall be reduced by using above strategy I.e-

Large product portfolio (Product Line + Product Width) in a particular enclosed space or department => More sales clerk to assist every customer => Less average time customer spends in the store => No extra need of CSM => Cost optimization => Better company's system process, new technologies, security & safety.

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