7-11 Supply Operations Management

Good Essays
7-11 SOM Study - Final

Group 1

LRSP - 433

March 3, 2010

Pledged 3/3/2010

Table of Contents
Background 2-3
Problem Statement 4
Scope 5
Service Design and Characteristics 6
Service Analysis and Selection 7-8
Sales Production & Forecasting 9-11
Breakeven Analysis 12-13
Capacity Management (includes Decision Tree) 14-15
Inventory Management and Materials Requirements 16
Logistics and Supply Chain Management 17
Quality Management and Implementation 18-19
Prototype Design 20-21
Conclusions & Recommendations 22
References 23
Appendices - Tables/Figures/Graphs 24


Extensive research into 7 Eleven’s
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USE was expanded to include field consultants and market managers and today it gives franchisees, store managers and employees a chance to see and taste new products for upcoming seasons that are intended to address the changing preferences of customers. The merchandising plan for seasonal and high-potential new products is also shared. The centerpiece of the USE is the virtual 7-Eleven store, actual size 7-Eleven floor plans are built to show how seasonal products are assimilated into the standard store mix (7-Eleven About Us, 2010). For future reference, this capability should be the tool whereby the adjustments necessary to accommodate a drive thru capability are visualized and ultimately realized.
For perspective, as of January 2010, 7-Eleven, Inc. had earned the No. 3 spot on Entrepreneur magazine annual Franchise 500, which ranks top franchise opportunities in the U.S. An obviously healthy organization, this is 7-Eleven's 17th year to break into the top 10 (7-Eleven Inc, 2010).

Problem Statement
A major element of 7-11’s success is its focus on convenience. By staying open 24 hours a day and offering quick and easy pre-made food items, customers are able to make a speedy stop at the store at any point during the day. 7-11 continues to add to its selection of food items to better compete with fast food restaurants and other
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