TESCO 1) Process of Transformation Goods and services are both areas of operations, this means that they will change the state of any input into output. In order to achieve this they will need to have a transformation process according to the type of service or goods they have to offer this is all part of satisfying customer needs. Table 1.1 shows us the simple input transformation output process. Transformed Resources Materials information Customers Input transformation process …
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showed last 75 words of 2467 total
…on a certain level). Tesco uses both of these approaches when deciding when to reorder. To calculate when to reorder the operation manager can again use the EOQ. When he has calculated the EOQ, ha can figure out the time between the orders by dividing the EOQ with units per year (EOQ/D) and he can calculate the order frequency by dividing the units per year with the EOQ (D/EOQ). (Slack, N. et al, 2001)