Variation
Variation is related to how much the level of demand changes over a time period due to some
factors. However, a number of factors make it difficult to predict variation.
HOW VARIATION AFFECTS OPERATIONS MANAGEMENT
Demand is not always constant the demand can change over time due to many reasons and
operations management is need to understand such type of variations in business. To recognizing
these changes help you to increase your operation performance.
Random variations
This type of variation occur without any known reason or explanation. These are the
unforeseeable and unexpected changes in demand. In the juice shop at university I have realized
that some students are sitting there who are not buying anything but there is a huge rush on that
point which interact the other students there because they feel that its products are may good
that’s why there is more students are attract there and they buy the products by the shop and
actually behind this demand shopkeeper is not fully aware.
Trends
These are a long-term upward or downward movement in demand. When
products experience a growth or decline in the market, trends tend to emerge. For example the
demand of people is change over time in the juice shop there products has been same for last six
month and there is no change in their menu now the trend has changed and people are demand
some different products which are not available and some time people are not buying and prefer
other products but they have need to change their menu according to customer needs demand.
Seasonal factors
The seasonal factors also affect on the demand of the products as we
seen in the juice shop the demand of the juices or shakes has increase as
started the summer season as compare to winter the seasonal factors are
very important in demand process as we also seen that at the time of 1 pm to
4 pm there is more rush at the juice shop because students feel thirst and
they take different beverages.
High variation
If there is high variation there is more satisfaction because people feel comfortable and
confidence on your products they are more loyal with you and your products. If the customers
are demand the same products that they already use it than you have need to make more better
quality of that products so customer are more satisfy and sales are increase if sales are increase
then your profitability definitely will rise. If the customer are demand new products then they
should need to produce such kind of things that customer are demand so that they satisfy their
customer high variation is good for business as we seen at juice shop demands are high but they
are fail to fulfill the demands of the customers this is the big reasons to movement of students
towards abbasi cafe outside the campus.
Low variation
Low variation may be positive or negative because may be people are satisfy or
dissatisfy. If they are satisfy with you and your products and the variations are low because all
things are available that they want and they have no needs of demand of any thing or may be
they do demand but that is not fulfill and left to do demand anymore. We have seen that students
are demand for some things but unfortunately their demands are not fulfill that’s why they left to
do more demand anymore.
cost
This objective looks at how much variation there is in the unit cost of a product as measured by changes in a
variety of factors, including the volume and the variety of the products. Products that feature a greater variety
tend to sport lower volumes and higher unit costs and vice versa. Ultimately, this affects the price of the
product, the costs of producing it, and the profits to be obtained from that product.
One major operational objective of the juice or coffee shop could be the cost factor where the market
competitiveness is specially base upon the cost effectiveness. The appropriate cost can be identified for producing
goods and services and it help a shopkeeper to return on investment. Through this they create competition in the
market and attracting more customers towards them. The cost of product and service influence by volume of
production, variety , variation and the visibility. The management through these factors improve the coffee or juice
shop quality, speed ,dependability and flexibility as well. They are getting some external reward and they also save
their operational cost.
Recommendation for improvement
They have to need improve the culture of shop and train or educate the
employees so that they serve with very efficient manner. They should need to improve busy
schedule of customer arrival. They should offer more beverages in the afternoon session so that
they attract more customers. And also negotiate on their prices and add more products in their
product line.
