Memorandum Essay Examples

This memo describes how the concept of delayed differentiation can be used to optimize the process of cooking complete “package” meals in a supermarket. The first part of this memo defines what is delayed differentiation. Second part will explain the application of delayed differentiation for creating “package” meals in the supermarket. Next part will focus on advantages and disadvantages of this approach.
Delayed differentiation is a hybrid strategy between make-to-order and make-to-stock, where a general product is build to stock, and as the order comes, the general product is differentiated by assigning to it special features or adding special components. Thus, the general product is produced and soled in two phases: first phase is make-to-stock, where the common product is manufactured and stocked; second phase is make-to-order, where the specific features are assigned to the product depending on the customer order.
In the case of preparing a complete “package” meals in a supermarket, the main idea of the concept of delayed differentiation is following: mix the meat, side dish, salad and bread only after you know the order. Hence, in the make-to-stock stage, store all the components of the “package” meal and buy them according to the forecasts. In the make-to-order stage, mix the components of the meal according to the preferences of the customer. This idea can be realized in two ways. First, it is possible to higher additional salesmen (or use existing one, who, for example, is working on cutting chees and sausages), who would assemble the “package” meal from the separately placed components of the menu. Second way of realizing the delayed differentiation idea in the supermarket is to create a separate stand for packaged meals, that would have 4 sections: meat, side dish, salad and bread. Each section will store separate packages of the menu. For example, meat section will store separate packs of roast leg of lamb, filet mignon and fried chicken. Thus, in order to buy a “package” meal, the customer will be able to pick up by himself what he/she wants by choosing one pack from each of the four sections.
On the one hand, the concept of delayed differentiation has a number of benefits. First, it will reduce the risk of storing complete “package” meals that won’t be sold and as a result will expire. Second, there is a benefit of learning demand, and better forecasting in the future, as it will be easier to see what components of the “package” meals are the most popular. Third, delayed differentiation reduces unit-holding costs, as each separate component of the meal has less value than the whole pack, and if one component will expire, in case of delayed differentiation the supermarket won’t dispose the whole pack, but only one component of the meal.
On the other hand, there are some disadvantages that are connected to the concept of delayed differentiation. Introducing this concept will include extra costs for the redesign of existing production and storage process. Also, additional costs can occur because of the need in extra materials, such as creating separate packages for each component of the meal, creating new compartment for the storage and hiring a salesman. Thus, before introducing the concept of delayed differentiation, it is important to asses the costs connected to the changes against the associated benefits.