Costco Wholesale

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University of Liverpool (OHE) – Supply Chain Operations Management Module COSTCO WHOLESALE CORPORATION Presented by: Temitope O. Fagade Project proposal and scope: A review of Costco Wholesale Corporation key parameters in supply chain operations with a view to suggesting improvements and operational predictions for better economic impact. 28 February 2012. TABLE OF CONTENTS LIST OF ABBREVIATIONS AND GLOSSARY OF TERMS………………………………………………….. 3 1. EXECUTIVE SUMMARY…………………………………………………………………………………………… 4 2. INTRODUCTION……………………………………………………………………………………………………… 5 3. PURPOSE & MAIN AREAS OF RESEARCH………………………………………………………………… 6 4. DESCRIPTION OF THE SEPARATE AREAS…………………………………………………………………. 9 4.1 SC…show more content…
Here best value (in quality of goods & services offered) at low prices are the driving force. Costco backs up it’s products with a return policy within a time frame of average 90 days, a highly endearing attraction to it’s members. The business model focuses on low prices & volume purchase in order to achieve profit at low margin with stores offering discounts on an average of 4,000 products out of which roughly a thousand are ‘treasure hunt’ referring to goods that are scarcely available for purchase always. Volume purchase from few vendors yielding further reduction in price and lowers cost in marketing. With low prices, quality goods in limited selection based on forecast lead to quick turnover in inventory. The high volume purchase and efficient network distribution yield efficiency in operations for Costco. With a stipulated membership fee, Costco warehouses are designed to help small to medium size businesses reduce purchasing costs as well as serving large families with the goods packaged in bulk ranging from alcoholic beverages, electronics, fresh food/produce, household & office supplies, pharmaceuticals & tires. Also available are special memberships with services like car & home insurance, mortgage and real estate services, and packages for travels. 3. Purpose and Main Areas Of the Research (Concepts & Techniques) Analyzing the supply chain operations at Costco wholesales, in line with the business focus while limiting to it’s
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