APPLIED READING ASSIGNMENT #1 (KIMBERLY-CLARK/COSTCO ARTICLE) REQUIREMENTS

Read the article titled Minding the Store: Kimberly-Clark Keeps Costco in Diapers, Absorbing Costs Itself---Under New System, Supplier Stocks Retailers Shelves and Boosts Bottom Lines---Averting a Huggies Squeeze available via the course website.

Prepare responses to the items below. Responses should be about one (1) page (please use 12-point font, single-spaced with 1 inch margins) using Word.

1) The article briefly discusses a Kimberly-Clark strategy for managing its raw-material shipments related to its production of diapers. Which costing system: job costing, process costing, or some hybrid thereof, would be most effective for Kimberly-Clark to determine the cost of manufacturing a single Huggies diaper? Explain your reasoning. (1 point)

2) Which costing system: job costing, process costing, or some hybrid thereof, would be most effective for Kimberly-Clark to determine the cost of manufacturing Huggies diapers for a company like Costco that may have Costco-specific requirements as to the size, shape, or quality of diaper packaging? Explain your reasoning. (1 point)

3) The article discusses a computer link between Kimberly-Clark and Costco to facilitate accurate and timely coordination of inventory levels at Costco stores. This coordination has allowed Costco to lower its cost of inventory related to diapers. Provide and briefly describe two (2) other methods that may help Costco in lowering its costs related to diaper inventory. Please make sure to include in your response how the method lower costs. (1 point)

4) The article, written in September of 2000, states that retailer-supplier coordination on the supply chain is the model of the future and will ultimately determine which companies succeed in the new millennium. That statement describes supply chain management which has been adopted significantly since the article was written. Provide and briefly describe two (2) recent (2017 to current date) supply chain management examples that helped lower costs, provide higher quality products, or both to the company(ies) involved in your examples. Please cite your source(s) by including references in parenthesis. (2 points)

Article below!!

How Kimberly-Clark Keeps Client Costco in Diapers

By

Emily Nelson and

Ann ZimmermanStaff Reporters of The Wall Street Journal