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
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Operations Management
Operations management optimizes businesses and manages waste.
They ensure smooth operations, from factory lines to Disneyland queues.
question_answer ANECDOTE
Coffee Shop Operations
Getting a cup of coffee involves a complex operational process, from bean to cup.
This includes managing supplies, staff, and customer flow.
volunteer_activism ADVICE
Managing Uncertainty
Embrace uncertainty in business and plan for various scenarios.
Account for variables like weather and time to complete tasks.
Get the Snipd Podcast app to discover more snips from this episode
"It's difficult to control everything," says our guest professor for this week, Santiago Gallino. "What is not difficult is to plan for everything." Today we venture into the sphere of business that masters the planning, and backup planning: operations management.
It's more than just predicting a bottleneck and imagining a solution, because there's always a bottleneck to clear. It's about modeling, and weighing the costs of messing up vs. missing out. For instance, take a newspaper vendor who has to decide how many newspapers to sell tomorrow morning. Do they buy fewer, knowing that they'll sell out–and then miss out on potential revenue from papers not sold? Or do they order more than they expect to sell, just in case–and eat the cost of a few unsold papers? This type of trade-off applies to all kinds of businesses, and Gallino talks us through how to choose.
The only certainty in this life is uncertainty. But we are certain you will come out of this episode feeling better prepared for your future business. And fortunately, there are no bottlenecks in podcasting.
The series is hosted by Robert Smith and produced by Max Freedman. Our project manager is Julia Carney. This episode was edited by Alex Goldmark and engineered by James Willetts. The show is fact-checked by Sierra Juarez.
Help support Planet Money and get bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney.
To manage podcast ad preferences, review the links below:
See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.
Planet Money 