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Interview Summary

1) Organizational overview

Costco, a renowned wholesale giant, operates on a membership-based model. The ethos of the company is centered around its members, who pay to shop at its warehouses. This unique business model shapes every aspect of Costco's operations, from customer service to environmental policies.

2) Organizational objective

At the core of Costco's strategy is the emphasis on member satisfaction. The company's primary objective is to ensure that members find value in their shopping experience, which justifies the membership fee. This approach drives decisions in various aspects of the business, including customer service, product offerings, and store policies. In order to meet member satisfaction：

1.Costco requires phones to be picked up after two rings, so they set up and administration office which is only for answering the phone

2. enough employees to serve members who are in the store.

3) Decision variables

The manager discussed two main sets of decision variables. The first thing is that the week is divided into weekday and weekend, and then every day is divided into three phases: morning, noon, and evening. It is important to make sure that there are enough employees based on the amount of traffic at these three times. The second was the desire to minimize the budget and make sure that the employees had enough time off.

4) Risks

One of the significant challenges Costco faces is in hiring and retaining staff. The retail market is notorious for high turnover rates, and Costco is not immune to this issue. Sickness absence is also considered, along with the need to ensure that you have enough staff. And while it is possible to make a general prediction of the phone call number and how many people would visit the store at the specific time period, sometimes the results can exceed or under the prediction.

5) Tradeoffs

Adopting self-checkout devices is a move towards operational efficiency. However, this technological advancement does not come at the expense of employee jobs. Additionally, Costco is willing to invest extra in specialized trades, indicating a balanced approach towards automation and human workforce.

6) Constraints

Administration office Constraints:

1. There is enough seat in the office, which the maximum of that office is six people.

Staff Constraints:

1. All the full-time employees are required to work no more than or less than 40 hours a week which usually 8 hours a shift for five days each week.

2. All the part time employee are required to work no more than or less than 2o hours a week which usually 4 hours a shift for five days each week.

7) Tools:

Costco employs sophisticated tools like PowerBI, Power Analytics, and Excel for data management. These tools help in analyzing various matrices essential for making informed decisions. This approach reflects Costco's commitment to leveraging technology for effective business analytics and decision-making.