Zara has used local production in Europe to have short replenishment lead times. How does this capability of quick response help the company improve profits in a highly volatile trendy apparel marketplace?
Answer to relevant QuestionsConsider the purchase of a can of soda at a convenience store. Describe the various stages in the supply chain and the different flows involved. When can tailored sourcing be used to improve supply chain profits? What are some challenges with implementing tailored sourcing? What transportation challenges does Peapod face? Compare transportation costs at online grocers and supermarket chains. For a manufacturer that sells to many retailers, why does a quantity flexibility contract result in less information distortion than a buy-back contract? What revenue management opportunities are available to the owner of a warehouse and how can it take advantage of them?
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