Question: This question concerns the location pooling strategy discussed in class. ( 1 ) Briefly explain how such a strategy works, and the benefit of such

This question concerns the location pooling strategy discussed in class.
(1) Briefly explain how such a strategy works, and the benefit of such a strategy on inventory
management and other aspects of supply chain.
Now, think about the Buy Online Delivered from Store approach (we discussed this in class
as an example of omnichannel fulfillment). For example, Target fulfills a majority of its ecommerce
orders by shipping merchandise from its US retail stores.
(2) When an online order is received, what are the operational pros and cons of a) filling it
from an e-commerce warehouse and b) filling it from a retailer store. If from a retail
store, then which factors should be considered in deciding which retail store?
Last year, Target announced that it will invest $100 million to set up sortation centers to
consolidate and process shipments from its retail stores to customer homes. (See a separate
article posted on Canvas for more information.)
(3) Use the discussion above in (2) to explain the benefits of using the sortation centers
specifically, which Cons of deliver from store can these sortation centers address?
Add your original thoughts about how these sortation centers should be used most
effectively.

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