Solved: Hi There , I am trying to complete my assignments in "Operations Management "

1.

Two categories of chain store

1. Pharmaceuticals – Rite Aid
2. Department Store – Nordstorm

Factors important for the appropriate site for locating the chain stores-

1. Pharmaceuticals – Rite Aid – Must be easily accessible to a large population, so shopping complex, highway complexes, hospital premises, college campus etc.
2. Department Store – Nordstorm – Since as such not any emergency purchases, the same can be conveniently located in a posh area with mediocre density level

2.

The significant differences between the importance of the factors in the two examples-

1. In the Rite Aid, the location plays a major factor as the purchases are of exigency nature. If delayed this can cost in terms of human life.
2. In the Nordstorm, the location is relevant but the purchases are made in a more leisured manner. Even if the store is located at a bit far distant place, the demand will not be greatly affected.

3.

If any new player is coming up in the arena-

Pharmaceuticals- It would be best if located in a highly dense place. Moreover if some space can be rented in any hospital premises this would enhance the effectiveness of the new pharmacy in terms of catering to the need of the patients. Also this will ensure monetary assurance.

Department Store- If the new store is located in an area with continuous visitors or a residential place, this would let the store to function properly.