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Tuesday, April 04, 2006

Inputs to machine

A Vending machine has four basic processes, they are: product classification, product space allocation, product selection, and product cycle rotation. Product classification involves marking out available item categories like packed snacks, beverages, candy, etc., across all possible choices. A determination is then made as to which product categories will be represented in a specific vending machine. Then accordingly space is allocated to each product in the machine. Product selection within categories is important for maximizing sales and profitability. This selection is made on the basis of location of machine, where it is placed and also whether the machine requires bottles or cans. By identifying types of products, such as core products and cyclical products, flexibility and variety can be achieved.

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