Class -  For this weeks discussion, I have decided to choose Costco as the corporation to look into what decisions a manager might make at the Managerial Level

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For this weeks discussion, I have decided to choose Costco as the corporation to look into what decisions a manager might make at the Managerial Level. Costco is the second biggest retail store behind Walmart. By getting customers to signup for memberships, they are able to offer product prices that are hard for any competitor to rival. Although the amount of products that Costco stocks is considerably less compared to Sams Club, they believe by operating on a very lean operating-cost-model will drive in higher profits due to higher volumes. In keeping with its lean and mean cost model, the lower number of items at Costco ensures that the fastest-selling items are displayed to optimize retail space (How Costco Manages Its Inventory and Supply Chain, 2019). 

A Marketing Manager could use data from IT systems such as Inventory management to find out which products are selling more than others. Specifically, if a product such as chicken nuggets see a decline in sales which is shown in the data, the Marketing Manager may be more inclined to promote the product more by setting up a samples-both to give it more visibility or even offer a buy one get one off deal. This could be defined as a tactical decision in hopes sales will pick back up and inventory stock is is being moved faster than before. Costco also displays goods in their shipping pallets, instead of arranging individual items on shelves (Kissinger, D., 2017). This decision decreases visibility of products, however, reduces overall inventory costs in the long-run.

References: 

Kissinger, D. (2017, February 06). Costco's Operations Management, 10 Decisions, Productivity. Retrieved August 29, 2020, from http://panmore.com/costco-wholesale-operations-management-10-decisions-areas-productivity

How Costco Manages Its Inventory and Supply Chain. (2019, December 31). Retrieved August 29, 2020, from https://marketrealist.com/2019/12/analyzing-costcos-inventory-supply-chain-management-strategies/