Operations Management∶ Financial Dimensions.pptVIP

Cash Flow Cash flow relates the amount and timing of revenues received to the amount and timing of expenditures for a specific time. In cash flow management, the usual intention is to make sure revenues are received before expenditures are made. If cash flow is weak, short-term loans may be needed or profits may be tied up in inventory and other expenses. For seasonal retailers, erratic cash flow may be unavoidable. Table 12-6: The Effects of Cash Flow Resource Allocation Capital Expenditures Long-term investments in fixed assets Operating Expenditures Short-term selling and administrative costs in running a business Enhancing Productivity A firm can improve employee performance, sales per foot of space, and other factors by upgrading training programs, increasing advertising, etc. It can reduce costs by automating, having suppliers do certain tasks, etc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. * * * * * * * * * * * * * * * * * * * * * * * *Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall *Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall *Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall *Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall * * * * * *Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Operations Management: Financial Dimensions RETAIL MANAGEMENT: A STRATEGIC APPROACH 11th Edition BERMAN EVANS Chapter Objectives To define operations management To discuss profit planning To describe asset management, including the strategic profit model, other key business ratios, and financial trends in retailing To look at retail budgeting To examine resource allocation Op