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Costco Lean Analysis

340 Words2 Pages
As the term lean reflects the operation’s goal to eliminate waste from the system, Costco can be defined as a lean company. Some of the efficiencies that Costco obtained, are the fact that it does not advertise and the fact that it has a limited selection of products for sale. Not only they have a limited selection, but their products are not marked up more than 14% over cost. The fact that its prices are not higher than average, is not a synonym for low quality. On the contrary, Costco understands that in order to keep its customers, quality has to be high.
Costo understands that in order to have a successful business model, a barely sufficient or adequate offer of products is necessary. In fact, Costco carries around 3,700 items in its store,
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