Exercise 3 PROCESS SELECTION

This blog post deals with the process selection decision making policy of Wegmans.  This policy does not directly correlate to all stores under the Wegmans name.  The store interviewed and studied is Wegmans of Woodbridge, NJ.

Question 1:

The product flow that Wegmans uses is a batch flow which is when they make products by the bundle.  In a food distribution store it is always good to have more than less so you never run out.  In a batch flow you order by the bundle and mass produce products so they are enough for the customers.  A batch flow is also a product that is made to order, in which food products are.

Question 2:

The type of customer order that Wegmans processes is Made-To_Stock (MTS). This option is beneficial to Wegmans because it is a supermarket so things are ordered through inventory to fulfill customers demands. Wegmans always keeps items stocked up on the shelves and in storage so that they do not run out. The other options for customer orders would not work very well for Wegmans.

Customers selecting their products

Question 3:

The Process Characteristics Matrix
Because Wegmans provide more than just groceries, it falls into 2 cells in the process characteristics matrix:
• Batch Flow/Job Shops
• Project.
In the batch flow/job shops cell, products are produced in batches or lots and the labor is more skilled and flexible in its ability to make different products. When we look at Wegmans specialty shops this comes to mind. They make different products in batches; like in the French Pastry Shop they make a variety of pastries in batches. But we also see the project cell in operation as well. In the project form of operations, products are unique and highly customized. For example, in the Cappuccino Bar and Cheese Shops, products are made to order and customized by the customer’s specific needs. Customers can order a coffee exactly how they like it and get a cheese platter made with the specific cheeses they know their guest would love.

Question 4:

Since wegmans caters to consumers as customers, their process selection depends upon what the current locals food tastes are. Wegmans has so many different brands and types of food products that it is able to cater to all peoples different tastes. Specific locations may offer foods known only to that area and may allow other stores in different locations to sell the product as well to introduce new locations to these products. The two main factors affecting process selection would include customer based selection and available food based selection.

Warehouse distribution center

Question 5:

No, the economies of scope process does not apply to Wegmans, or any supermarket for that matter. Wegmans carries a wide variety of products already to meet customer demands. Very rarely are customer requests put in for specific consumer items, however Wegmans does have a product request service. If Wegmans was to sell very few specific items I'm sure there would be some way to adopt a mass customization method however since Wegmans sells such a vast amount of different products, there is no need for an economy of scope service.