Consider a firm like Zara that has developed production capabilities with very short replenishment lead times. Do you think this capability is more valuable for its online operations or its store operations? Why?
Answer to relevant QuestionsAs a firm gets better at postponement (can postpone at lower cost), should it increase/leave unchanged/decrease the variety that it offers? Why? What is the impact of supply uncertainty on safety inventory? A firm improves its forecast accuracy using better marketing intelligence. What impact will this have on supply chain inventories and profitability? Why? Compare the transportation costs for an e-business such as Amazon.com and a retailer such as Home Depot when selling home-improvement materials. Most firms offer their sales force monetary incentives based on exceeding a specified target. What are some pros and cons of this approach? How would you modify these contracts to rectify some of the problems?
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