SUPPLY CHAIN – CHAPTER 3 STUDY QUESTIONS
1. How could a grocery retailer use inventory to increase the responsiveness of the
company’s supply chain?
CUSTOMER RESPONSIVENESS – refers to good and quick service and providing
value for money to the customers
Grocery Store can use inventory in order to increase the responsiveness of the
company’s supply chain for the following aspects:
o By way of locating large amount of inventory closer to the customer
o By way of increasing or reducing the cycle inventory
o They should be aware of expired dates with respect to some items
2. How could an auto manufacturer use transportation to increase the efficiency of its
supply chain?
COMPONENTS OF TRANSPORTATION DECISIONS:
m
er as
o Transportation in supply chain means moving inventory from one place to
co
another. Efficiency can be achieved between the time taken to transport
eH w
the product and the cost of transportation. Cost of transportation will be
o.
reduced if assembly locations are near to the market.
rs e
ou urc
Auto manufacturer must decide upon
o Modes of transport to deliver products to distributor
o Shipping routes and networks
o
o Operational cost
aC s
Operational efficiency can be achieved by using cheaper transportation like ships
vi y re
and trucks and arranging larger shipment to available benefits of transportation.
3. How could a bicycle manufacturer increase responsiveness through its facilities?
ed d
RESPONSIVENESS ROLE IN SUPPLY CHAIN
ar stu
o Level of responsiveness in case of bicycle manufacturer depends upon the
physical location where the product in supply chain is stored, assembled,
and fabricated
is
o Responsiveness will increase if location is near to market but it will reduce
economies of scale that would be achieved if it is located centrally. Facility
Th
should be flexible enough to respond to the market demands and provide
products according to demand.
o Manufacturing facilities should give adequate products to meet the
sh
demands timely and according to fashion
4. How could an industrial supplies distributor use information to increase its
responsiveness?
This study source was downloaded by 100000838319108 from CourseHero.com on 12-10-2021 08:20:40 GMT -06:00
https://www.coursehero.com/file/30230625/SUPPLY-CHAIN-chapter-3docx/
, INDUSTRIAL SUPPLIES DISTRIBUTOR USE INFORMATION TO INCREASE ITS
RESPONSIVENESS AS FOLLOWS:
o Information technology can be used by industrial supplies to track and
analyze the trend to know about the demands of the customers, which
will help in increasing the response. This information can be used to
acknowledge the customer about the availability of the different products
with the current price and can develop the market.
o On the other hand, this information can be used to analyze the prices,
cost, inventory, transportation facilities, and customer in supply chain.
Supply and demand can be matched by providing accurate information.
o By tracking the order as it is realized. Supplier can provide immediate
delivery and can achieve timely profit.
5. Motorola has gone from manufacturing all its cell phones in-house to almost completely
m
outsourcing the manufacturing. What are the pros and cons of the two approaches?
er as
PROS AND CONS OF THE IN-HOUSE AND OUTSOURCING:
co
o Sourcing is a business process to get some parts or service from outside
eH w
due to high level of technology and cheaper cost. Outsourcing can be
o.
done where one is supported by third party to get greater surplus and
rs e
that should be on the basis of supply chain surplus.
ou urc
o Outsourcing was a difficult step as it influences responsiveness and
efficiencies. Outsourcing some of its products to china improved the
o
efficiency but decrease the responsiveness due to long distance.
aC s
Transportation cost was increased while getting mobile phones from
vi y re
china to increase the responsiveness
o Motorola tried delegating some of its control, talent, design, and
expertise to get a level of quality but they bought it back due to
ed d
decreased responsiveness and increased transportation cost.
ar stu
6. How can a home-delivery company like Peapod use pricing of its delivery services to
improve its profitability?
PRICING:
is
o Pricing plays a prominent role in supply chain and acts as a driver to
Th
balance the efficiency and responsiveness of the supply chain. There are
different pricing strategies such as everyday low pricing, differential
pricing, fixed pricing, etc. the pricing decision should be made based on
sh
the business or nature of the company and maximizing the profit.
o The firms can achieve competitive advantage by using the suitable pricing
strategy based on their customers who prefer responsiveness or low cost.
This study source was downloaded by 100000838319108 from CourseHero.com on 12-10-2021 08:20:40 GMT -06:00
https://www.coursehero.com/file/30230625/SUPPLY-CHAIN-chapter-3docx/
1. How could a grocery retailer use inventory to increase the responsiveness of the
company’s supply chain?
CUSTOMER RESPONSIVENESS – refers to good and quick service and providing
value for money to the customers
Grocery Store can use inventory in order to increase the responsiveness of the
company’s supply chain for the following aspects:
o By way of locating large amount of inventory closer to the customer
o By way of increasing or reducing the cycle inventory
o They should be aware of expired dates with respect to some items
2. How could an auto manufacturer use transportation to increase the efficiency of its
supply chain?
COMPONENTS OF TRANSPORTATION DECISIONS:
m
er as
o Transportation in supply chain means moving inventory from one place to
co
another. Efficiency can be achieved between the time taken to transport
eH w
the product and the cost of transportation. Cost of transportation will be
o.
reduced if assembly locations are near to the market.
rs e
ou urc
Auto manufacturer must decide upon
o Modes of transport to deliver products to distributor
o Shipping routes and networks
o
o Operational cost
aC s
Operational efficiency can be achieved by using cheaper transportation like ships
vi y re
and trucks and arranging larger shipment to available benefits of transportation.
3. How could a bicycle manufacturer increase responsiveness through its facilities?
ed d
RESPONSIVENESS ROLE IN SUPPLY CHAIN
ar stu
o Level of responsiveness in case of bicycle manufacturer depends upon the
physical location where the product in supply chain is stored, assembled,
and fabricated
is
o Responsiveness will increase if location is near to market but it will reduce
economies of scale that would be achieved if it is located centrally. Facility
Th
should be flexible enough to respond to the market demands and provide
products according to demand.
o Manufacturing facilities should give adequate products to meet the
sh
demands timely and according to fashion
4. How could an industrial supplies distributor use information to increase its
responsiveness?
This study source was downloaded by 100000838319108 from CourseHero.com on 12-10-2021 08:20:40 GMT -06:00
https://www.coursehero.com/file/30230625/SUPPLY-CHAIN-chapter-3docx/
, INDUSTRIAL SUPPLIES DISTRIBUTOR USE INFORMATION TO INCREASE ITS
RESPONSIVENESS AS FOLLOWS:
o Information technology can be used by industrial supplies to track and
analyze the trend to know about the demands of the customers, which
will help in increasing the response. This information can be used to
acknowledge the customer about the availability of the different products
with the current price and can develop the market.
o On the other hand, this information can be used to analyze the prices,
cost, inventory, transportation facilities, and customer in supply chain.
Supply and demand can be matched by providing accurate information.
o By tracking the order as it is realized. Supplier can provide immediate
delivery and can achieve timely profit.
5. Motorola has gone from manufacturing all its cell phones in-house to almost completely
m
outsourcing the manufacturing. What are the pros and cons of the two approaches?
er as
PROS AND CONS OF THE IN-HOUSE AND OUTSOURCING:
co
o Sourcing is a business process to get some parts or service from outside
eH w
due to high level of technology and cheaper cost. Outsourcing can be
o.
done where one is supported by third party to get greater surplus and
rs e
that should be on the basis of supply chain surplus.
ou urc
o Outsourcing was a difficult step as it influences responsiveness and
efficiencies. Outsourcing some of its products to china improved the
o
efficiency but decrease the responsiveness due to long distance.
aC s
Transportation cost was increased while getting mobile phones from
vi y re
china to increase the responsiveness
o Motorola tried delegating some of its control, talent, design, and
expertise to get a level of quality but they bought it back due to
ed d
decreased responsiveness and increased transportation cost.
ar stu
6. How can a home-delivery company like Peapod use pricing of its delivery services to
improve its profitability?
PRICING:
is
o Pricing plays a prominent role in supply chain and acts as a driver to
Th
balance the efficiency and responsiveness of the supply chain. There are
different pricing strategies such as everyday low pricing, differential
pricing, fixed pricing, etc. the pricing decision should be made based on
sh
the business or nature of the company and maximizing the profit.
o The firms can achieve competitive advantage by using the suitable pricing
strategy based on their customers who prefer responsiveness or low cost.
This study source was downloaded by 100000838319108 from CourseHero.com on 12-10-2021 08:20:40 GMT -06:00
https://www.coursehero.com/file/30230625/SUPPLY-CHAIN-chapter-3docx/
