Home Improvement de Mexico

Executive Summary
Operational management is a key factor affecting businesses bottom line and success in the 21st century. In addition, organizations can optimize the use of data analytics, supply chain management and linear programming to improve the bottom line.
The evolution of data analytics has helped increase fact based decision-making among management in organizations removing intuition management decisions. Analyzing data that has been collected improves the efficiency, effectiveness and quality an organization can provide to its customers. This accomplishment is seen by product turnover, better placement of products, and the ability to meet the customer’s demands while operating efficiently.
Proper supply chain management is required to maintain a competitive advantage over its competition. It is recommended that Acme convert their supply chain to a similar model used by Home Depot via Rapid Distribution Centers (RDC). Home Depot’s model is recognized as one of the leaders in supply chain management and can be easily applied to Acme Home Improvement stores. RDC’s eliminate minimum orders from vendor’s saving the stores from over stocking or running out of stock improving customer satisfaction by having the products they need. In addition RDC’s brought 450 vendors together allowing the Home Depot stores to order from one central RDC, eliminating multiple ordering systems and numerous invoices. This also led Home Depot to reduce their 7 management teams down to 3 management teams for a cost savings. Lastly RDC’s have reduced shipping time with an average turnaround time of 3 days and allow the store to order the quantity that is needed to restock their supplies based on data analytics and consumer demands.
Through linear programming of Acme employee assignment schedule, management was able to set-up a schedule to maximize outputs by minimizing employee costs. Acme will have a total of 25 full time and 42 part time employees working per day totaling...