7-11 Supply Operations Management
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
Background
Extensive research into 7 Eleven’s history and current status finds there is no evidence 7-Eleven has ever had one of their stores provide a drive through service.
The company that pioneered the convenience store concept was founded during 1927 in Dallas, Texas and the concept was developed during their first five years of operation. The company was initially an ice company and its retail outlets began selling milk, bread and eggs as a convenience to local customers. Almost 20 years later (1946) the name 7-Eleven originated in when stores adjusted their hours of operation to 7 a.m. to 11 p.m. (7-Eleven About Us, 2010).
7-Eleven, Inc. has become the world’s largest operator, franchisor and licensor of convenience stores. Based in Dallas, Texas, the company operates, franchises and licenses more than 6,970 stores in the U.S. and Canada. The company operates and franchises more than 5,900 (4,550 franchised) stores in the United States and they serve approximately seven million customers each day. Store count exceeded 36,000 worldwide in April 2009. Internationally, 7-Eleven operates, licenses and affiliates convenience stores in countries including Japan, Taiwan, Thailand, South Korea, China, Hong Kong, Malaysia, Mexico, Singapore, Australia, Philippines,
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
Background
Extensive research into 7 Eleven’s history and current status finds there is no evidence 7-Eleven has ever had one of their stores provide a drive through service.
The company that pioneered the convenience store concept was founded during 1927 in Dallas, Texas and the concept was developed during their first five years of operation. The company was initially an ice company and its retail outlets began selling milk, bread and eggs as a convenience to local customers. Almost 20 years later (1946) the name 7-Eleven originated in when stores adjusted their hours of operation to 7 a.m. to 11 p.m. (7-Eleven About Us, 2010).
7-Eleven, Inc. has become the world’s largest operator, franchisor and licensor of convenience stores. Based in Dallas, Texas, the company operates, franchises and licenses more than 6,970 stores in the U.S. and Canada. The company operates and franchises more than 5,900 (4,550 franchised) stores in the United States and they serve approximately seven million customers each day. Store count exceeded 36,000 worldwide in April 2009. Internationally, 7-Eleven operates, licenses and affiliates convenience stores in countries including Japan, Taiwan, Thailand, South Korea, China, Hong Kong, Malaysia, Mexico, Singapore, Australia, Philippines,
References: 7 Eleven - About Us. (2010). Retrieved February 10, 2010, from http://www.7- eleven.com/AboutUs/tabid/73/Default.aspx 7-Eleven Inc 7-Eleven, Inc., Selects FuelQuest/PDI for Gasoline Inventory Management and Accounting System; PR Newswire. (2004). Retrieved February 25, 2010, from http://www.highbeam.com/doc/1G1-123232449.html Baker, B Franchise Opportunities Mall. (2010). Retrieved February 11, 2010, from 7-Eleven: http://www.franchiseopportunitiesmall.com/Best_Franchise_Opportunities.asp?ID=2682 Gillespie, E Real Estate Requirements. (2010). Retrieved February 27, 2010, from http://www.7- eleven.com/RealEstate/RealEstateRequirements/tabid/181/Default.aspx. Store retail information system. (2010). Retrieved February 23, 2010 from Web site: http://www.7-eleven.com/NewsRoom/BackgroundInformation/