7-11 Supply Operations Management

7-11 SOM Study Final Group 1 LRSP 433 butt against 3, 2010 Pledged 3/3/2010 T open of Contents Background2-3 Problem Statement4 Scope5 Service excogitation and Characteristics6 Service epitome and pickaxe7-8 sales business & Forecasting9-11 Breakeven synopsis12-13 Capacity Management (includes Decision Tree)14-15 stocktaking Management and seculars Requirements16 Logistics and Supply Chain Management17 flavour Management and Implementation18-19 Prototype Design20-21 Conclusions & Recommendations22 References23Appendices Tables/Figures/Graphs24 Background Extensive research into 7 Elevens history and circulating(prenominal) status finds in that location is no evidence 7-Eleven has ever had wizard of their retentions leave a learn d cardinal receipts. The caller-up that pioneered the devisal put in concept was founded during 1927 in Dallas, Texas and the concept was ruined during their first five long time of movement. The order was initially an ice company and its retail outlets began selling milk, bread and eggs as a convenience to local guests.Al some 20 years later (1946) the name 7-Eleven originated in when workshops adjusted their hours of operation to 7 a. m. to 11 p. m. (7-Eleven About Us, 2010). 7-Eleven, Inc. has become the worlds largest operator, franchisor and licensor of convenience broths. Based in Dallas, Texas, the company operates, franchises and licenses to a greater extent than 6,970 stores in the U. S. and Canada. The company operates and franchises more than 5,900 (4,550 franchised) stores in the United States and they serve approximately seven one thousand million customers each day. Store count exceeded 36,000 worldwide in April 2009.Internationally, 7-Eleven operates, licenses and affiliates convenience stores in countries including Japan, Taiwan, Thailand, South Korea, China, Hong Kong, Malaysia, Mexico, Singapore, Australia, Philippines, Indonesia, Norway, Sweden and Denmark (7-Eleven Inc, 2010). 7-Eleven marketing dodging focuses the needs of convenience oriented customers by providing a broad pick of fresh, gritty choice products and function at everyday fair prices, and speedy transactions. Each stores selection of about 2,500 different products and dish outs is adapt to meet the needs and preferences of local customers.Stores typically vary in size of it from 2,400 to 3,000 squ ar feet and are roughly often located on corners for great visibility and easy access. 7-Elevens regimen serving flips a proprietary line of prepared-fresh-daily and daily delivered deli sandwiches, wraps, eat sandwiches and a wide assortment of baked goods. fountainhead known 7-Eleven proprietary products are Big Gulp fountain soft drink, Big Bite lattice items, the Slurpee beverage and fresh-brewed Cafe Select coffee. 7-Eleven is overly one of the nations largest independent plasholine retailers.In summing up to the regimen and gas service, 7-Eleven offers patrons a outlet of conveni ent services designed to meet the peculiar(prenominal) needs of case-by-case neighborhoods, including automated coin orders, copiers, fax machines, automatic teller machines, phone cards and, where available, lottery tickets. Key Milestones * 7-Eleven, Inc. is in private held and became a wholly owned subsidiary of Seven-Eleven Japan Co. , Ltd. in Tokyo, Japan, and its affiliates on Nov. 9, 2005. * Company launched its private-label brand, 7-Select, in 2008 and get outd 32 raw(a) products to stores. 7-Eleven introduced Yosemite Road Wines to their stores * In 2009, 7-Eleven began offering a Hot Foods Menu includes pizza, chicken tenders, chicken wings, falling outfast sausage, egg and cheese quesadillas and hash-brown potatoes. 7-Eleven has become much more innovative since the mid 1990s. They have evolved from a modify retail boldness, with most store co-occurrence functions handled in each geographically organized division by a local management team to the proprietary Re tail Information System (RIS).In 1994 The University of 7-Eleven ( use of goods and services) was natural out of the Merchandising Personnel Expo, a store show and sampling event held once a year and intended to train field merchandising. USE was expanded to include field consultants and market managers and comparable a shot it gives franchisees, store managers and employees a chance to see and taste modernistic products for upcoming seasons that are intended to reference the changing preferences of customers. The merchandising invent for seasonal and high-potential sweet products is also shared.The centralizepiece of the USE is the virtual(prenominal) 7-Eleven store, actual size 7-Eleven floor plans are built to show how seasonal products are assimilated into the standard store mix (7-Eleven About Us, 2010). For upcoming reference, this capability should be the tool whereby the adjustments necessary to accommodate a drive thru capability are visualized and ultimately reali zed. For perspective, as of January 2010, 7-Eleven, Inc. had earned the No. 3 spot on Entrepreneur magazine annual Franchise 500, which ranks top franchise opportunities in the U. S.An obviously healthy formation, this is 7-Elevens seventeenth year to break into the top 10 (7-Eleven Inc, 2010). Problem Statement A major element of 7-11s success is its focus on convenience. By staying open 24 hours a day and offering lively and easy pre-made food items, customers are able to make a speedy stop at the store at any point during the day. 7-11 continues to add to its selection of food items to better compete with fast food restaurants and other convenience stores. However, while 7-11 does compete very well with other convenience stores, the store has a signifi quite a littlet disadvantage competing with fast food chains due to the ack of a drive-thru. Customers may choose to get a line a McDonalds or a Burger King over 7-11 for their beverages and sandwiches, simply due to the fact th at they do not have to get out of the car. Therefore, 7-11 would benefit signifi back endtly from a strategy that allows them to be warlike with the fast food chains while simultaneously capturing a market niche that other convenience stores have no capability in. For that reason, this report analyzes the financial benefit of adding a drive-thru windowpane to already lively 7-11 stores. ScopeThis study analyzes the challenges and benefits of adding a drive-thru window service to existing 7-11 service designs and subsequently offers a look-alike solution for the drive thru service option. abridgment includes detailed service design or redesign of on-going 7-11 service organisations along with examining processes and physical layouts of stores. sales forecasting allow for be used to support closing tree modeling intended to examine strengths and weaknesses of the drive thru service as an alternative to topical 7-11 service (based upon personifys and revenues).The break-eve n point of adding this service is also considered along with numbers required to make a profit. young(prenominal) stores with successful drive-thru services erect be examined for purposes of potentially adopting confusable methods in specific service areas. This flip provides abstract for an efficient queuing system for the drive thru customer and establishing a smooth process for the 7-11 employees to complete the customer orders. This study also examines why 7-11 stores should select specific products for sale finished the drive thru window that are intended to encourage customers to choose 7-11 over competitors.Service Design and Characteristics The 7-Eleven franchise locations across the nation offer the convenience of access to gasoline and groceries. Historically the onus was on the client to retrieve the products sought after, and consequently corrupt the items. The circulating(prenominal) body structure of the 7-Eleven queuing system is the simplest form of singl e channel, single chassis (7-Eleven Inc, 2010). In that the client enters the store and selects the product, waits in line, and then leveragings the item. Depending on the store location, and the ability for paying staff, there are either one or two cashiers.The service of 7-Elevens convenience is hampered by fluctuations of population arrival rates during specific events, and times of day. The exponential distribution of clients assists in ordering products, but it does not repair the service failings when there are long lines, especially compared to the competitor Wawa, Inc. Wawa has twice the amount of gasoline stalls, and cashier capabilities. Customers are able to tacit walk in select product, and gasoline, but do not have to wait as long, because the blend and layout of the Wawa store is set up to handle periods of high vocation.The set up of the 7-Eleven store is such(prenominal) that they are still servicing smaller populations, and are not retrofit to handle higher a mounts of traffic thence 7-Eleven is missing out on opportunities from the clientele that are in need of a speedy sales process. The correction of this lies in altering the service design of the franchise stores. The addition of a drive-thru window would dramatically increase the service capabilities of the franchise locations. This would shift the service flow to a multi-channel single phase process.The addition of a separate external line would benefit the current queuing system the 7-Eleven offers, of just one or two cashiers servicing all clientele. The ability to handle the clientele who are simply purchasing the convenience items, foods, and beverages has the potential to firm the positioning of the organization. Cars passing through a drive-thru would be able to purchase simple items such as coffee, quick 7-Eleven brand foods, Slurpees, and tobacco products.As exampled in the damages analysis the alteration of the retrofit to include a drive-thru window, would require a s tore owner to incur a significant loan to complete the product, but the break-even point would be relatively quick considering the size of investment, and the future return on investment has the potential to increase store sales significantly. The new flow decreases the within traffic, which reduces the amount of irritation a person feels when trying to purchase the signature 7-Eleven items (7-Eleven Inc, 2010). Service Analysis and Selection Service Process Flow chart Service Analysis The Queuing SystemThe 7-Eleven Drive-Thru queue system go forth be a simple first come, first served system. This willing simplify queue system discipline. The line structure will be a single channel, single phase the simplest type of hold line structure. We will make the following assumptions for our drive-thru model * An arrival rate of sixteen cars (customers) per hour * A customer service rate of three* transactions per unit or twenty per hour * Poisson arrivals and exponential service We can now de nameine the following * Utilization of the drive-thru operator(s) * amount out number delay in line come number in the system * Average waiting time in line * Average waiting time in the system, including service * Average employ of the drive-thru operator(s) is 80%. The sightly number in the waiting line is 3. 2 cars. The average number in the system is 4 cars. The average waiting time in line is 12 minutes. The average waiting time in the system is 15 minutes. Our new store layout provides limited quadriceps handiness and we want to keep our customers safe and provide acceptable service. We would like to ensure, with 95% certainty that no more than 4 cars will be in the system at any time.The toast level of service for the four car limit is 67. 2%. Therefore, the probability of having more than four cars in the system is 32. 8 %. The operator(s) must attain a service level of 29 cars per hour to provide a 95% confidence that no more than four cars will be in the s ystem. The current operator rate is 20 per hour the rate will improve because we will provide a limited selection of items for our drive-thru customers and acceptance of electronic payment will increase qualification also. *Approximately three minutes per customer is the drive-thru national average ime for customer service (Baker, 2009). Sales and Production Forecasting Sales and Production Forecasting (cont) Sales and Production Forecasting (cont) Individual Product Sales Changes due to Drive-Thru Window Breakeven Analysis As the store stands, the breakeven point of current sales is 23,809. The table to a lower place assumes a monthly fixed cost of $42,618 with no addition to the store, with an average unit variable cost of $1. 21 per unit and an average selling price of $3. 00 per unit. If the lease holder decides to add the drive through window, the estimated cost of construction will run $400,000.As the store does not have this amount of cash, a loan will need to be taken to c over costs. Fortunately, the store is able to gain a loan for 5 years at 6% interest. Due to the change magnitude size of the building and surplus employees and infrastructure, the fixed costs increase from $42,618 to $66,025 or an increase of 55%. However, because of the drive through window the store will be selling higher profit adjustment goods such as coffee, fountain drinks, store drinks and cigarettes in greater volume, the variable cost per transaction will decrease from 1. 21 to $0. 91 and the average selling price will also decrease to $2. 65.These values hold the required profit margin percentage relatively constant while increasing profits through increased unit sales. The chart below assumes a monthly fixed cost of $66,025 plus $400,000 loan (Financed 5 years, 6% Int = $7,773/month), an average variable cost of $0. 91 per unit and an average selling price of $2. 65. The difference between break even points is reduced from 23,809 additional units exchange to 20,84 7 cover the cost of the loan amount. Therefore, if the store can withstand finiancing for the $400,000 loan, then the investment will be profitable both in the short and long term periods. Capacity ManagementCapacity planning for our 7-Eleven drive thru was mostly completed in the Service Analysis section where the service rate was calculated. Based on our customer service rate of three minutes per customer (vehicle), the maximum power of our drive thru is twenty cars per hour or theoretically, 174,720 vehicles per year. However, call for will not dictate that the drive thru operate at sustained maximum capacity at all times. Jacobs and chamfer determines that the best operating point for a service is near 70 percent of the maximum capacity for the best balance between rate of service utilization and service quality (Jacobs & Chase, 2009).In our present queuing model, the operator utilization rate is 80 percent. The zone between 70% and 100% of capacity is the scathing zone whe re customers will get processed through the line but service quality will decline. Above 100% capacity, the line will back up and many customers will probably not be served at all. We can safely lower the projected customer arrival rate from 16 vehicles per hour to 15 vehicles per hour which will calculate to an operator utilization rate of 75 percent while still defending a customer service rate of three minutes or less.The queuing system will now be revised * Average utilization of drive thru operator(s) is 70% * Average number of customers waiting in line is 2. 25 * Average number of customers in the system is 3 * Average waiting time in line is 9 minutes * Average waiting time in the system is 12 minutes The remainder of the queuing system data remains unchanged because we will still operate at a 95% certainty that no more than 4 cars will be in the system at any time. At 75% capacity the customers can be served chop-chop and accurately.The remaining 25% unused capacity can be utilized in valued added trading operations such as facility clean-up and maintenance, refilling refreshment tables or shelf stocking. Considering the volatility of customer demand throughout the daily cycle, this is a good balance. The breakeven analysis determined that an addition 20,847 units need be sold monthly to cover the cost of the loan amount for the drive thru addition. At 75% operator utilization rate, the drive thru has the capacity to serve 10,920 vehicles per month. Capacity Management Decision Tree Analysis 1) realize drive-thru addition to existing store at a cost of $400,000. 0. Offer a limited assortment of targeted items to drive-thru selection. Sales of 401400 (33,450 x 12) units per year for 5 years at average unit cost of $2. 63 is $1,055. 682. 00. prospect is 80% for $4. 88 million in revenue . 20% for $2. 77 million in revenue. 2) Build drive -thru addition to existing store at a cost of $400,000. 00. Discontinue walk-in service, provide limited assortm ent of items. Sales of 240,000 (20,000 x 12) units per year for 5 years at average cost of $2. 63 is $631,200. 00. Probability is 80% for $2. 76 million in revenue, 20% for $1. 49 million in revenue. ) Do nothing. Sales of 300,000 (25,000 x 12) units per year at an average unit cost of $3. 00 is $900,000. Probability is 80% for $4. 5 million in revenue, 20% for $2. 7 million in revenue. Inventory Management and Material Requirements 7-11 has already implemented an effective inventory management system. The Retail Information System (RIS) was developed in the early 1990s to maintain store inventory and manage product ordering. Initially nominated as an bill system, the RIS has been developed to track sales information and determine the success of each product.Therefore, the RIS enables store operators to stay in stock, order best-selling and delete slow-moving items, (Store, 2010). The RIS uses a bar code scanner and touch riddle point-of-sale registers to scan products and track when they are being sold. This system allows store operators to easily obtain current stock quantities and determine which products are selling well. As the stock decreases, managers use Mobile Ordering Terminals to order items that are moving and delete items that are not selling (Store, 2010).Since 7-11s RIS has been successfully established as an effective form of product management, this report does not recommend implementing any additional inventory systems to maintain the stock. While the inventory system would not have to change, there would be a few new material requirements for adding a drive-thru service to 7-11. The stores may require additional registers and coming back space to account for the new layout designed around the window. Furthermore, stores may need to order more stands and coolers to display the food products closer to the counter so that they are in a convenient location for the employees running the window.Finally, the 7-11 will need to create the drive- thru menu for customers to view before they order. Logistics and Supply Chain Management Location Selection The current requirements for the selection of optimum locations depend on the traffic of the area, and design of the store. The urban locations have a high foot-traffic requirement, and therefore would not be an optimal choice for this conversion. The free standing stores in strip-mall locations would not be a desirable location either, due to the fact that the structure is not owned by 7-Eleven.The prime locations for the 7-Eleven with the drive-thru would be the locations that are free standing, with give the axe capabilities these stores have the option of being retro-fit or built-to-suit. The traffic requirements for these locations are as listed 1. Trade area demographics(a) Heavy density within ? mile radius 5,000 or more residents/workers per full-strength mile in the trade area (b) Lack of low priced gas brands within ? mile 2. affair(a) 25,000 vehicles per day pa ssing the site 3. Activity Generators(a) Mixture of residential, commercial, office, Industrial (b) Freeway orientation preferable (c) favorable 24 hour uses 4.Site Characteristics(a) Corner location with traffic signal or shopping center pad location (b) 25,000 to 50,000 sq. ft. space preferred (c) High visibility and excellent accessibility with typical gas station access far corner and no road medians preferred (d) 2,000 to 3,000 sq. ft store size min. 1,800 sq. ft selling space (e) Spacious and convenient ingress, egress, and in-lot maneuverability (f) Ability to sell beer and wine preferred (g) 24 hour operation required There would still need to be a high density of population, and traffic for the new sites. Traffic and activity generators would also be the same.The primary alteration would be the need to select a site that can support the new feature. The square foot space preferred would need to be altered to include the drive-thru space of the store, and extra pavement outside. Traffic flow would also have to be managed in a way that would make the inside of the store as accessible as before, in addition to allowing the gasoline purchase to still be maintained. This would necessitate an additional 10,000 sq. ft. for the pavement, in addition to the extra 500 to 1,000 sq. ft. of space added to the store (Store RIS, 2010). Supply Chain ManagementThe current supply method for 7-Eleven is a Just-In-Time (JIT) method, and it begins with the Retail Information System (RIS). The store owner will be able to order the extra inventory needed to stock the drive-thru in addition to the regular intimate sales, with the click of a button on this system. Supplies currently are delivered throughout the day, depending on the items needed and the suppliers schedules. The alteration of the select stores utilizing the drive-thru window increase of supplies needed, and subsequently would require an increase of deliveries to the store.The alteration would reach each segment of the supply chain, beginning with the centrally located distribution center, and filtering out to the distributors. This impact would also increase of demand from suppliers in each link similar to the economic concept of a money multiplier. There would not be an extreme alteration of supply chain management, considering only select stores will have this option (Store RIS, 2010). Quality Management and Implementation The breadth and depth of current 7-Eleven systems and processes should allow for an dewy-eyed carrying out of a new Drive-Thru service.To support this position the following analysis and discussion is offered. 7-Eleven is not an ISO-9000 company however it is a very innovative and well managed company. And though 7-Eleven is not ISO 9000 certified their most central business processes align with the management principles of the ISO standards and Total Quality Management objectives. There is nothing in the 7-Eleven history that clearly states they have a Qua lity Management System however several of their internal systems and processes check to a Quality Management System because of the practicable areas they control (Jacobs & Chase, 2009).A recent 7-Eleven bodied line opening announcement for a Continuous Improvement tutor (CI) stipulated Six Sigma certification was a desired qualification. A CI Manager would be expected to participate with division level managers in bodily process improvement events at various facilities. The CI Manager would also be responsible for death penalty process overhaul, and upgrading programs for the organization at local levels. In addition, the CI Manager would be responsible for coaching, functional reproduction, communications, and identifying and transferring best practices externally and internally (Jobs in DFW, 2010).Thus, 7-Eleven does recognize and embrace the benefits of Six Sigma certification. Foremost in enormousness to quality management and process improvement for any organization is its IT infrastructure. Accordingly, 7-Eleven commissioned Hewlett Packard (HP) to assist in analyzing their IT requirements and then developing an IT infrastructure that supported all of 7-Elevens needs. The 7-Eleven CIO ultimately approved the HP Adaptive Enterprise dodge as the company IT solution. The AE Strategy enhances system wide agility and improves productivity and service. -Eleven management views the AE Strategy as differentiating their company from other organizations in the way they run their stores, select and distribute products, work with suppliers, serve customers and air to key stakeholders. Other key 7-Eleven systems identified and analyzed in this report leverage the overarching AE infrastructure to actualize their varied processes (7-Eleven Inc, 2010). The Retail Information Systems (RIS) uses AE infrastructure servers, switches, printers, and monitors to drive all of their system processes on a 4/7 basis. As noted earlier in the background section 7-Eleven i s one of the nations largest independent gasoline retailers and tied into the AE infrastructure is the FuelQuest Fuel Management System (FMS) that 7-Eleven uses to remotely monitor tank inventories, forecast fuel replenishment, manage fuel-supplier contracts, perform best-buy, fuel-pricing analysis, ensure environmental compliance and to dispatch and receive fuel deliveries (7-Eleven Inc, 2004).The University of 7-Eleven (USE) could arguably be the key component in 7-Elevens quality management processes and essential to the successful implementation of a new Drive-Thru service. The USE was discussed in some detail during the background section so just a few key attributes that could be leveraged to facilitate implementation of a new Drive-Thru service will be highlighted here. The USE is a great tool for examination and quality implementation of change. 7-Eleven senior management employs the USE to introduce new ideas and to start standardization of product selections, merchandising and operations.They entangle all levels of management, marketing, field consultants, franchisees, and employees in the USE, providing everyone an prospect to see and taste new products, and review recommended merchandising plans for seasonal and high-potential new products. The centerpiece of the USE, and perhaps most beneficial to supporting the Drive-Thru concept is the Virtual 7-Eleven store an actual size 7-Eleven floor plan designed to show how products are assimilated into the standard store mix (7-Eleven About Us, 2010). This capability should be leveraged as the means through which the new Drive-Thru service is modeled.Physical structure of a facility with a Drive-Thru service could easily be modeled, thereby allowing for examination of internal re-design or process changes/improvements necessary for the new concept. Although 7-Eleven does not fly a TQM flag above their corporate headquarters, their key management systems and processes indicate they adhere to an organiz ation wide commitment to continuous work improvement and meeting customers needs, with continuous effort to improve quality whenever and wherever possible an approach that defines the basic tenets of TQM.A benefit from this should be a successful implementation of a new Drive-Thru service. Prototype Design Current 7-Eleven Store Layout & Design New 7-Eleven Drive-Thru Prototype Layout & Design Conclusions and Recommendations The option to expand an individual 7-Eleven store with a Drive-Thu window will not only develop a more profitable scenario for the individual lease holder, it may also stand as a positive example for implementing profitable innovations through the 7-Elenve convenience store network and company structure.Based on preliminary financial analysis a $400,000 investment in a drive through window will greatly increase fixed costs, will dramatically increase profits through increased average transaction sales and a reduction in variable costs due to availability of pro ducts offered. The main sections of the 7-Eleven store will remain the same, but the drive-thru window will provide customers specific goods such as coffee, soft drinks and cigarettes which represent the stores highest volume and highest marginal profit items.The profits generated from the addition will provide customers a greater value by offering them the benefits of remaining in their car to obtain most of the same goods and services typically available in the store. If the venture is successful, it is very likely corporate support will be granted resulting in additional Drive-Thru locations throughout the country. To properly implement these changes, additional dressing and support structures already exist within The University of 7-Eleven (USE).The USE is the principal change management tool for 7-Eleven and therefore should be the centerpiece for managing implementation of the Drive-Thru Service. The company currently uses the USEto introduce new products and processes, they educate and involve employees, managers, and suppliers in the USE, and the Virtual Store is precisely what should be used to model our Drive-Thru Service & Prototype. Proper training is the first step for educating current store lease holders to achieve success.To further incentivize and expand national 7-Eleven sales, corporate financing should be made available to encourage private lease holders to expand their businesses with the Drive-Thru service. In addition, 7-Eleven can assist individual lease holder by providing common construction plans, operations managers and breakeven data from similar sized and market stores to paint a better picture of the profitability of expansion. These trends will provide customers higher value while creating better profits for individual store as well as the organization as a whole.References 7 Eleven About Us. (2010). Retrieved February 10, 2010, from http//www. 7-eleven. com/AboutUs/tabid/73/Default. aspx 7-Eleven Inc. Climbs to No. 3 Spot. (2 010). Retrieved February 11, 2010, from http//www. 7-eleven. com/NewsRoom/7ElevenIncClimbstoNo3Spot/tabid/360/Default. aspx. 7-Eleven, Inc. , Selects FuelQuest/PDI for Gasoline Inventory Management and Accounting System PR Newswire. (2004). Retrieved February 25, 2010, from http//www. highbeam. com/doc/1G1-123232449. html Baker, B. (2009).Chic-fil-A wins 6th drive-thru title. QSR Magazine. Retrieved February 19, 2010 from www. qsrmagazine. com/reports/drive-thru_time_study/ Franchise Opportunities Mall. (2010). Retrieved February 11, 2010, from 7-Eleven http//www. franchiseopportunitiesmall. com/Best_Franchise_Opportunities. asp? ID=2682 Gillespie, E. M. (2005). Starbucks sees growing demand for drive-thru coffee. Retrieved February 20, 2010 from mesh site http//www. usatoday. com/money/ industries/food/2005-12-24-starbucksdrivethru_x. htm. Jacobs, R. F. & Chase, R. B. (2009). Operations and supply management The core. New York, NY. McGraw-Hill Irwin. Jobs in DFW LocalHelpWanted-C ontinuous Improvement Manager Help Wanted ads-Continuous Improvement Manager Local Help Wanted-Continuous Improvement Manager Jobs-Continuous Improvement Manager Careers. (2010). Retrieved February 21, 2010, from http//www. localhelpwanted. net/dfw/job/Continuous-Improvement-Manager-Dallas-TX-75219-USA/lhw-e0-3741966/ Real Estate Requirements. (2010). Retrieved February 27, 2010, from http//www. 7-eleven. om/RealEstate/RealEstateRequirements/tabid/181/Default. aspx. Store retail information system. (2010). Retrieved February 23, 2010 from Web site http//www. 7-eleven. com/NewsRoom/BackgroundInformation/ StoreRetailInformationSystem/tabid/159/Default. aspx. Appendices Service Process Flowchart7 Sales and Production Forecasting9-11 Individual Product Sales Changes due to Drive-Thru Window11 Breakeven Analysis Graphs12-13 Capacity Management Decision Tree15 7-Eleven Current Store Layout20 7-Eleven Drive-Thru Prototype Design21