Operations Management of the Kroger Company Essay

Operations Management of the Kroger Company Essay

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Operations Management of the Kroger Company
Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
History and Background
Headquartered in Cincinnati, Ohio, The Kroger Company is one of the largest supermarket retailers across the United States. Founded in 1883, Barney Kroger invested his life savings of $372 to open his first grocery store at 66 Pearl Street in downtown Cincinnati. (Kroger, 2011). Barney was quite proud. He was the first grocer ever to have a bakery, to sell meat, and to sell other groceries all in one store. From the start, Barney operated his business with a simple motto: “Be particular. Never sell anything you would not want yourself.” (Kroger, 2011). Today, one hundred and twenty-eight years later, the Kroger Company is still following Barney’s motto.
With consistent growth to accommodate more variety, more merchandise, and the convenience of one-stop shopping, Mr. Kroger may not recognize the Kroger Company today. Under two dozen banners such as City Market, Dillon’s, King Soopers, Kroger, Fry’s and Ralphs the Kroger Company operates 2,439 supermarkets in 31 states, 788 convenience stores under six banners in 18 states, a...

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Gale, S. (2006). Common ground. PM Network, 20(7), 46-52.
Heizer, J. & Render, B. (2011). Operations Management (10th Ed.) Prentice Hall
The Kroger Co. (2010). The Kroger Co. 2010 Fact Book. Retrieved from http://www.
The Kroger Co. (2011). The Kroger Co. Corporate news and information: History.
Retrieved from http://www/thekrogerco.com/corpnews/corpnewsinfo_history.htm
The Kroger Co. (2011). The Kroger Co. Operations. Retrieved from http://www.the
Pearson, M. (2010). The Three Mantras of Supply Chain Planning Masters. Logistics
Management, 49 (1), 20-21. Retrieved August 13, 2011 from EBSCOhost.
Simchi-Levi, D. & Simchi-Levi, E. (2003) Finding the Right Balance. Logistics Today,
16-19, 3p. Retrieved August 13, 2011 from EBSCOhost.

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