Wal-Mart designs its networks so that a DC supports several large retail stores. Explain how the company can use such a network to reduce transportation costs while replenishing inventories more frequently.
Answer to relevant QuestionsConsider the supply chain involved when a customer orders a book from Amazon. Identify the push/pull boundary and two processes each in the push and pull phases. Compare the transportation costs for an e-business such as Amazon.com and a retailer such as Home Depot when selling home-improvement materials. What factors lead Wal-Mart to own its trucks although many retailers outsource all their transportation? For products such as home appliances, toys, garments, and consumer electronics, what factors would influence selecting an onshore, near-shore, or offshore supplier? What are some challenges that limit the effort put in by supply chains to improve sustainability?
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