Planet Money
Summer School 6: Operations and 25,000 roses
Aug 16, 2023
Santiago Gallino, a Wharton professor specializing in operations management, dives into the art of planning and logistics. He explores the delicate balance of supply and demand using the example of ordering 25,000 roses for Valentine's Day. Gallino discusses the trade-offs businesses face, such as risking unsold inventory versus missed sales opportunities. He also touches on the complexities of operations in everyday settings, like coffee shops, and the evolving dynamics of self-checkout systems in retail, making business strategy feel both relatable and engaging.
32:17
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Quick takeaways
- Operations management involves planning, embracing uncertainty, and managing variability to keep businesses running efficiently.
- Optimization and efficiency in the global transportation chain can ensure timely delivery of products despite weather-related uncertainties.
Deep dives
The Importance of Operations Management
Operations management is crucial for businesses as it involves optimizing processes, managing the supply chain, and ensuring efficient operations. Operations managers are unsung heroes who ensure that businesses run smoothly and effectively. They use tools like planning, embracing uncertainty, and managing variability to keep operations running efficiently. For example, a well-run coffee store requires careful coordination of coffee bean delivery, machine specifications, milk, sugar, cups, and baristas, so that customers experience smooth service.
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