Essay About 00584472Supply Chain Management Chapter 3Question And Inventorymaintainence Cost

Supply Chain Management Case
SRIKANTH.THATIID:00584472SUPPLY CHAIN MANAGEMENT CHAPTER 3QUESTION :1ANSWERAttemptsDemand by customers.The quality for the buyier demand.The most prefarable brand of demand.The quatity of the buyier demand.RisksThe idealogy and stratergy followed by other inventoryMaintainence cost for the inventory.Customer needs: Selling the products at specific period accordinglyfaster the products gona reach the customer,happier will be the customerBy gaining the good will in the customers the more revenue will be generated RisksThe 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 :2ANSWERThe  risks involved in using direct replishment areThe 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 :3ANSWERThe seven eleven followed a main  strategy of setting up  company owned stores and third party owned franchise. Facilities offeredSize of the stores are increased.Around 16000 stores opened.Sales of the stores were increased highstores followed the local demands.Transportation planscombine delivery system was followed.frozen food waqs delivered three to seven times a weekwarm food was delivered thrice a week.Deliveries are made in off hours.Information planssetted 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 methodused the store delivery directly by manufactures.Some products were distributed by wholesalers.The concept of combined distribution centres around 2000 were introduced.QUESTION :7ANSWERPROS 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