SUPPLY CHAIN MANAGEMENT 1. How could a grocery retailer use inventory to increas
ID: 399207 • Letter: S
Question
SUPPLY CHAIN MANAGEMENT
1. How could a grocery retailer use inventory to increase the responsiveness of the company’s supply chain?
2. How could an auto manufacturer use transportation to increase the efficiency of its supply chain?
3. How could a bicycle manufacturer increase responsiveness through its facilities?
4. How could an industrial supplies distributor use information to increase its responsiveness?
5. Motorola has gone from manufacturing all its cell phones in house to almost completely outsourcing the manufacturing. What are the pros and cons of the two approaches?
6. How can a home-delivery company like Peapod use pricing of its delivery services to improve its profitability?
10. Would you expect a brick-and-mortar retailer or an online retailer to have a higher asset turnover? Which supply chain drivers impact asset turnover?
Explanation / Answer
Answer 1: Customers may think that the grocery store is very responsive if it encompasses wide variety of products. Responsiveness increases if the inventory is located close to customers. But high inventory of perishable products like meat, vegetables, milk etc. for such perishable item, grocery store should do frequent orders. This will ensure the freshness and removes the probability long stockout situations.
Answer 2: Efficiency of supply chain will increase if auto manufacturers are located near to customers. Proximity to customers or market will minimize the cost and transportation time. If the transportation is done at lower cost, then the auto manufacturer will be able to transport more frequently which in turn will reduce inventory.
Answer 3: facilities are the logistical driver, proximity of facilities to the target market and raw materials reduces transportation costs and increases responsiveness due to faster delivery. Facility location also helps in reducing inventory levels by facilitating faster delivery of raw materials or finished goods. A facility which is located near to market can respond to the demand quickly.
Answer 4: information is termed as a cross-functional driver. Information can consist industry data, market data or market demand or forecast. Based on an accurate industry information, an industry can improve functioning of its processes and limiting factors. Information helps in coordination between different department. Data analysis can help in making important decisions about the new product, market demand, transportation, inventory, costs etc.
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