Supply Chain Management Case

SRIKANTH.THATI

ID:00584472

SUPPLY CHAIN MANAGEMENT

CHAPTER 3

QUESTION :1

ANSWER

Attempts

• Demand by customers.
• The quality for the buyier demand.
• The most prefarable brand of demand.
• The quatity of the buyier demand.

Risks

• The idealogy and stratergy followed by other inventory
• Maintainence cost for the inventory.

Customer needs:

•  Selling the products at specific period accordingly
• faster the products gona reach the customer,happier will be the customer
• By gaining the good will in the customers the more revenue will be generated

Risks

• The quality of product is sometimes unsatisfactory becuase of the faster delivery.
• The lack of storage space  may causes the inventory problem.
• The faster transportation may cause the more expensive.

Where customers need it:

• The store should be located nearby for accesing easily.
• The stores should be set up where the demand is more and people can be satisfied
• The store should be easily understandable by the people than the other stores.

Risks

• The advertising cost
• The service of stores will be within the limits by interest.

QUESTION :2

ANSWER

The  risks involved in using direct replishment are

• The manitainence cost and cost of setting up the inventory.
• Lack of globalization.
• The products that are replaced cannot be as the product that was used earlier.
• The products that are shipped and replaced by company doesnt have a scope of globalization.

QUESTION :3

ANSWER

The seven eleven followed a main  strategy of setting up  company owned stores and third party owned franchise.

Facilities offered

• Size of the stores are increased.
• Around 16000 stores opened.
• Sales of the stores were increased high
• stores followed the local demands.

Transportation plans

• combine delivery system was followed.
• frozen food waqs delivered three to seven times a week
• warm food was delivered thrice a week.
• Deliveries are made in off hours.

Information plans

• setted up a facility where people can pay their bills like electricity and telephone bills.
• setted up the atms all over the outlets.
• installed a information system where the people can get information

inventory method

• used the store delivery directly by manufactures.
• Some products were distributed by wholesalers.
• The concept of combined distribution centres around 2000 were introduced.

QUESTION :7

ANSWER

PROS AND CONS:

• Both the strategy served for supplying of fresh food.
• the aim of supplying fresh food was greatly supported by facility of faster transportation.
• increases faster transportation but requires the more cost.
• managing an own distribution cell helps in reducing the cost spend on transportation.
• ensures the faster lead time but requires larger inventory facilities.
• separate department should be setup and manintained for own distribution setup