Why can a Home Depot with a few large stores provide a higher level of product availability with lower inventories than a hardware store chain such as Tru-Value, with many small stores?
Answer to relevant QuestionsWhy is Amazon able to provide a large variety of books and music with less safety inventory than a bookstore chain selling through retail stores? A firm improves its forecast accuracy using better marketing intelligence. What impact will this have on supply chain inventories and profitability? Why? 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. Explain why, for the same inventory level, a revenue-sharing contract results in lower sales effort from the retailer than if the retailer has paid for the product and is responsible for all remaining inventory. What revenue management opportunities are available to the owner of a warehouse and how can it take advantage of them?
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