finish line

Project Description:

read the case study at the bottom of this page. using ms word write at least 1 -2 pages responding the four questions listed after the case summary.

the paper is to be in essay format and there must be clear transitions between questions.

the paper is to include a cover page and a reference page. both the textbook and reference sources must be properly cited. (wikipedia, ask.com, and other similar websites are not appropriate academic sources of information.)

the paper should have 1" margins, be double spaced, and use 12 font.


case study - finish line
introduction
finish line runs retail athletic shoe stores in more than 200 locations. the company is based in indianapolis, indiana where its corporate warehouse is located. don courtney, vice president, in charge of management information systems, materials movement and distribution, assessed the impact of a new finish line megastore located in the circle center mall in indianapolis.
“one of the things we noticed early on was that we started having lots of products come in specifically for the circle center store. we were doing business with vendors we had not done business with before. a lot of products were just unique to that store and didn’t go to any other stores.”
the distribution center was set up to handle the mass distribution of products that would be sent to all of the stores. the special products for the circle center store would be ordered in small quantities. these products would take up just as much space to process as the normal products.
“..so we developed a predistributed purchase order so that the product was distributed immediately on receipt. this eliminated having to give it an assigned location and having to create pick lists just for that one store. so we did smooth out that process early in the phase of product coming in for that store. we did it by experience. we didn’t guess that one early. we did it when we saw it coming in, recognizing it was taking just as much effort for one store as it was for 200 stores.”
many aspects of the operation of the new store were different. the new store, with 15,000 square feet of retail space, compared to the normal 5,000 square foot stores, presented new operations challenges for don and his team. don wondered what other surprises were waiting as he prepared for the new store’s first week of operation and the upcoming christmas buying season.
logistics at the finish line
the efficient flow of material through the finish line distribution system is important to the success of the company. buyers who anticipate the needs of the many stores order the product. vendors, such as nike and reebok, send the product to the warehouse in indianapolis. on receipt, the product is stored in a location determined by a computer program designed to maximize the use of space in the warehouse.
a complete inventory of items in the stores, in transit between the stores and the warehouse, and in the warehouse, is maintained by a computer located at corporate headquarters. each night, the computer calculates lists of items that are needed by each store. this list is specially sorted so that the items can be quickly picked in the warehouse. once picked, a conveyor moves the items to an area where they are sorted by store.
the finish line has contracted with a few trucking companies which deliver product using large semi-trailers. the normal stores each receive a delivery every three-week days. this three-day schedule allows stores to be replenished two times per week in two out of three weeks. in a three-week period, they get five shipments. the new circle center store receives shipments every day of the week. products can also be transshipped between stores when necessary.
product buyers
products sold at the finish line stores are divided into about 40 departments. examples of these departments include basketball shoes, running shoes, cross trainers, tennis shoes, and football shoes. apparel, such as jackets, are also organized by department. buyers specialize in departments, allowing them to become familiar with the products and the particular characteristics of customer demand and supplier manufacturing practice.
shoes generally make up about 70 percent of the business. this varies, though, according to the time of the year. in august, 85 percent of the business might be fall back-to-school shoes. this drops to 50 percent in december, when it is easier to buy a sweatshirt or baseball cap as a gift.
the buyers see the finish line business as highly fashion oriented. seventy-five percent of the product that comes into the distribution center is new. often the product is very similar to one ordered last year. customers expect the latest style and color. the buyers can look at how a similar product sold last year when all of it was available. looking at how it sold in total may be misleading, since they are normally going to sell what they bought.
-the details continue in the attachment-.
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