McMaster-Carr sells maintenance, repair, and operations equipment from five warehouses in the United States. WW Grainger sells products from more than 350 retail locations, supported by several warehouses. In both cases, customers place orders using the Web or on the phone. Discuss the pros and cons of the two strategies.
Answer to relevant QuestionsConsider a firm such as Dell, with very few production facilities worldwide. List the pros and cons of this approach and why it may or may not be suitable for the computer industry. Describe the basic principle of DCFs and how it can be used to compare different streams of cash flows. How could Apple use collaborative forecasting with its suppliers to improve its supply chain? What are the characteristics of these industries that make them good candidates for aggregate planning? Discuss why subcontractors can often offer products and services to a company more cheaply than if the company produced them themselves?
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