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business
supply chain management global
Supply Chain Management : Strategy, Planning, And Operation 6th Global Edition Sunil Chopra, Peter Meindl - Solutions
DryIce, Inc., is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to be 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 units in the West. Managers at DryIce
SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in the 16 states listed in Table 5-5. There are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an
Consider a firm such as Ford, with more than 150 facilities worldwide. List the pros and cons of having many facilities and why this model may or may not be suitable for the automobile industry
Consider a firm such as Apple or Dell, with few production facilities worldwide. List the pros and cons of this approach and why it may or may not be suitable for the computer industry.
McMaster-Carr sells MRO equipment from five warehouses in the United States. W.W. Grainger sells products from more than 350 retail locations, supported by several warehouses. In both cases, customers place orders using the Internet or on the phone. Discuss the pros and cons of the two strategies.
Amazon has built new warehouses as it has grown. How does this change affect various cost and response times in the Amazon supply chain?
Do you think that a significant reduction in fuel costs will affect the global supply chain networks?
How do import duties and exchange rates affect the location decision in a supply chain?
How do the location and size of warehouses affect the performance of a firm such as Amazon? What factors should Amazon take into account when deciding where and how big its warehouses should be?
Use optimization for facility location and capacity allocation decisions.
Develop a framework for making network design decisions.
Identify factors influencing supply chain network design decisions.
Understand the role of network design in a supply chain.
What advice would you give to each of the three companies regarding its strategy and structure?
Which of the three companies do you think is best structured to deal with weak economic times?
Given that Tiffany stores have thrived with their focus on selling high-end jewelry, what do you think caused the failure of Zales’ upscale strategy in 2006? What products should Zale focus on?
What do you think of Tiffany’s decision to not sell engagement rings online? What do you think of Blue Nile’s growth into the non-engagement category?
What do you think of the fact that Blue Nile carries many stones priced at $2,500 or higher, whereas a large fraction of the products sold from the Tiffany website are priced at around $200? Which of the two product categories is better suited to the strengths of the online channel?
What are some key success factors in diamond retailing?How do Blue Nile, Zales, and Tiffany compare on those dimensions?
Why should an online seller such as Amazon build more warehouses as its sales volume grows?
Amazon sells books, music, electronics, software, toys, and home improvement products online. In which product category does going online offer the greatest advantage compared with a retail store chain? In which product category does the online channel offer the smallest advantage (or a potential
Consider the sale of home improvement products at Home Depot or a chain of hardware stores such as True Value.Which can extract the greater benefit from going online?Why?
Do you think distributor storage with last-mile delivery is good for the automotive spare parts industry? Why?
Why has the online channel been more successful in the computer hardware industry compared with the grocery industry? In the future, how valuable is the online channel likely to be in the computer hardware industry?
Although the drop-shipping arrangement of wholesale websites reduces inventory costs, could it create some problems?Why or why not?
What are the major advantages of using the drop-shipping distribution network?
What types of distribution networks are typically best suited for commodity items?
A distributor has heard that one of the major manufacturers from which it buys is considering going direct to the consumer. What can the distributor do about this? What advantages can it offer the manufacturer that the manufacturer is unlikely to be able to reproduce?
A specialty chemical company is considering expanding its operations into Brazil, where five companies dominate the consumption of specialty chemicals. What sort of distribution network should this company use?
What differences in the retail environment may justify the fact that the fast-moving consumer goods supply chain in India has far more distributors than it has in the United States?
Will product flow through an intermediary (or intermediate location)?
Will product be delivered to the customer location or picked up from a prearranged site?
Understand how online sales have affected the design of distribution networks in different industries.
Discuss the strengths and weaknesses of various distribution options.
Identify the key factors to be considered when designing a distribution network.
The United States has food service distributors that also replenish convenience stores. What are the pros and cons to having a distributor replenish convenience stores versus a company like Seven-Eleven managing its own distribution function?
Seven-Eleven is attempting to duplicate the supply chain structure that has succeeded in Japan and the United States with the introduction of CDCs. What are the pros and cons of this approach? Keep in mind that stores are also replenished by wholesalers and DSD by manufacturers.
What do you think about the 7dream concept for SevenEleven Japan? From a supply chain perspective, is it likely to be more successful in Japan or the United States? Why?
Seven-Eleven does not allow direct store delivery in Japan but has all products flow through its distribution center.What benefit does Seven-Eleven derive from this policy?When is direct store delivery more appropriate?
What has Seven-Eleven done in its choice of facility location, inventory management, transportation, and information infrastructure to develop capabilities that support its supply chain strategy in Japan?
Seven-Eleven’s supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated with this choice?
A convenience store chain attempts to be responsive and provide customers with what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case?
Would you expect a brick-and-mortar retailer or an online retailer to have a higher asset turnover? Which supply chain drivers impact asset turnover?
On which supply chain drivers should a firm trying to shrink its cash-to-cash cycle focus?
How can the full set of logistical and cross-functional drivers be used to create strategic fit for a cell phone manufacturer targeting both time-sensitive and price-conscious customers?
What are some industries in which products have proliferated and life cycles have shortened? How have the supply chains in these industries adapted?
What are the impacts of the high-low pricing adopted by major supermarkets on supply chain performance?
Marks & Spencer (M&S) has currently outsourced parts of its delivery services to a logistics provider. You have been asked to advise when the company should choose to operate its own account operation to provide delivery services.
“Price decisions only affect the buyers’ behavior and not the responsiveness of the supply chain.” Comment on this proposition with reference to shipping logistics.
Discuss the following proposition with reference to an automobile garage handling maintenance and repair: “Modal choice decisions could improve the responsiveness of the supply chain performance.”
The flow of information has become more and more important in supply chain management. Describe the key impacts of information on supply chain performance in terms of responsiveness and efficiency with reference to the logistics industry.
It is said that sourcing decisions are always an important factor affecting the supply chain performance for all industries.Is there any exception to this?
Define the key metrics that track the performance of the supply chain in terms of each driver.
Discuss the role of each driver in creating strategic fit between the supply chain strategy and the competitive strategy.
Identify the major drivers of supply chain performance.
Describe key financial measures of firm performance.
How did Netflix and Redbox achieve better strategic fit than Blockbuster?
In what ways did Blockbuster achieve better strategic fit than local stores?
A successful company needs to strike a balance between responsiveness and efficiency. Discuss how companies should prepare for globalization in terms of responsiveness.
Assume a new drug has been developed for the Ebola virus(EVD). Briefly describe its demand and supply characteristics at the beginning of the product life cycle.
It is important to have strategic fit between the supply chain and its competitive strategy. Given that creating strategic fit requires designing a supply chain whose responsiveness aligns with the implied uncertainty, list the supply chain’s abilities with regard to responsiveness.
What do you expect the level of implied demand uncertainty to be for jasmine rice produced by Thailand at a supermarket? Explain your answer with reference to Fisher’s model.
Reconsider the previous four questions for other companies such as Amazon, a supermarket chain, an auto manufacturer, and a discount retailer such as Walmart.
Is it correct to say that the implied demand uncertainty will correlate with the characteristics of demand, particularly for high-markdown products? Why?
What would be the impact of increasing product variety on implied demand uncertainty in the case of a convenience store like 7-11?
Explain the major difference between demand uncertainty and implied demand uncertainty using the example of the iPhone 6 lus.
How would you characterize the competitive strategy of a high-end department store chain such as Nordstrom? What are the key customer needs that Nordstrom aims to fill?
Describe the major challenges that must be overcome to manage a supply chain successfully.
Discuss the importance of expanding the scope of strategic fit across the supply chain.
Describe how a company achieves strategic fit between its supply chain strategy and its competitive strategy.
Explain why achieving strategic fit is critical to a company’s overall success.
In what way do supply chain flows affect the success or failure of a firm such as Amazon? List two supply chain decisions that have a significant impact on supply chain profitability
Consider 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.
Consider the supply chain involved when a customer purchases a book at a bookstore. Identify the cycles in this supply chain and the location of the push/pull boundary.
What are some strategic, planning, and operational decisions that must be made by an apparel retailer such as Gap?
Should the members of a supply chain maximize individual profits in order to raise the overall supply chain surplus?
What is supply chain management? Will a supply chain always look like a chain?
Should returns be kept at a store or sent to a fulfillment center?
How should store inventories be managed in an omni-channel setting?
Should online orders be filled from stores or fulfillment centers?
For what products does the online channel offer the greater advantage relative to retail stores? What characterizes these products?
What advantages and disadvantages does the online channel enjoy in the sale of shoes and diapers relative to a retail store?
What advantage can bricks-and-mortar players derive from setting up an online channel?How should they use the two channels to gain maximum advantage?
Should Amazon stock every product it sells?
Why is Amazon building more warehouses as it grows? How many warehouses should it have, and where should they be located?
How should the investment in flexibility be valued?
How should markets be allocated to plants and how frequently should this allocation be revised?
Should plants be able to produce for all markets or only for specific contingency markets?
Where should the plants be located, and what degree of flexibility should be built into each? What capacity should each plant have?
How should markets be allocated to DCs in terms of order fulfillment? What should be done if an order cannot be completely filled from a DC? Should there be specified backup locations? How should they be selected?
What products should W.W. Grainger carry at a store?
What products should be carried in inventory and what products should be left with the supplier to be shipped directly in response to a customer order?
How should product stocking be managed at the DCs? Should all DCs carry all products?
How many DCs should be built, and where should they be located?
Do you think Zara’s responsive replenishment infrastructure is better suited for online sales or retail sales?
What advantage does Zara gain from replenishing its stores multiple times a week compared with a less frequent schedule?
Why does Zara source products with uncertain demand from local manufacturers and products with predictable demand from Asian manufacturers?
Why has Inditex chosen to have both in-house manufacturing and outsourced manufacturing? Why has Inditex maintained manufacturing capacity in Europe even though manufacturing in Asia is much cheaper?
What advantage does Zara gain against the competition by having a very responsive supply chain?
What factors explain the success of Apple retail and the failure of Gateway country stores?
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