What capabilities can local suppliers in high-cost countries develop if they are to effectively compete against overseas suppliers in low-cost countries? Discuss how each capability impacts the level of inventory in the supply chain.
Answer to relevant QuestionsExplain how a reduction in lead time can help a supply chain reduce safety inventory without hurting product availability. Why is Amazon able to provide a large variety of books and music with less safety inventory than a bookstore chain selling through retail stores? What are some scenarios in which postponing product differentiation across all products may not be profitable? How can tailored postponement help in such situations? Do you expect aggregation of inventory at one location to be more effective when a company such as Dell sells computers or when a company such as Amazon.com sells books? Explain by considering transportation and inventory ...Why do you think assembly in the consumer electronics industry is performed by third parties, whereas assembly in the auto industry is almost never outsourced?
Post your question