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Chopra/Meindl 4/e CHAPTER THREE Discussion Questions
1. How could could a grocer store store use use in!entor in!entor to increase increase the the responsi!ene responsi!eness ss o" the the co#pan$s suppl chain% The logistical dri!er o" in!entor enco#passes all raw #aterials& wor' in process& and "inished goods within a suppl chain. cha in. A grocer store can (e #ore responsi!e in the ees o" its custo#ers i" it o""ers a (roader !ariet o" )*+s and /or #aintains a greater ,uantit o" each )*+. A greater ,uantit o" each )*+ is pro(le#atic "or highl perisha(le ite#s li'e produce& #eat& "ish& etc. -or - or these ite#s& a grocer store suppl chain should (e set up to per#it "re,uent orders so that "reshness is ensured and a stoc'out situation won$t eist "or a signi"icant length o" ti#e. A grocer store suppl chain should use historical h istorical de#and patterns "or seasonal ite#s to relie!e stress on all #e#(ers and pro!ide custo#ers with product during pea' de#and periods. . How could could an auto #anu"act #anu"acturer urer use transpo transportat rtation ion to increase increase the the e""icienc e""icienc o" its suppl chain% Transportation& Transportation& a logistical dri!er& entails #o!ing in!entor "ro# point to point in the suppl chain. The trade0o"" in transportation is (etween the cost o" transportation and the speed at which product is transported. )lower #odes o" transportation reduce cost& (ut could (e a reasona(le approach i" suppliers are co0 located with the asse#(l operations. " the suppl chain cha in is designed in such a wa& and asse#(l operations are located with proi#it to #ar'ets& then the suppl chain can (e run cheapl without holding too #uch in!entor in transit. 2. How could a (iccle (iccle #anu"acturer #anu"acturer increas increasee responsi!enes responsi!enesss through its its "acilities "acilities%% -acilities& another logistical dri!er& are the actual phsical locations in the suppl chain networ' where product is stored& asse#(led& or "a(ricated. A "acilit that is designed to (e "lei(le can respond ,uic'l to #ar'et de#ands ( retooling to produce di""erent #odels or products& whereas a dedicated "acilit cannot. 3ocating a "acilit close to the #ar'et will increase responsi!eness at the cost o" decreased econo#ies o" scale that #ight (e achie!ed with a centralied location. A "acilit "acilit that is under capacit will (e less responsi!e than a "acilit that is appropriatel sied or has ecess capacit. 4. How could could an industria industriall supplies supplies distri(ut distri(utor or use in"or#at in"or#ation ion to increase increase its its responsi!eness% n"or#ation is a cross0"unctional dri!er and consists o" data and analsis concerning "acilities& in!entor& transportation& costs& prices& and custo#ers throughout the suppl chain. n"or#ation ser!es as a connection a#ong all
Chopra/Meindl 4/e #e#(ers o" the suppl chain and operates within each #e#(er to "acilitate internal operations. Accurate in"or#ation can i#pro!e responsi!eness ( helping an industrial supplier (etter #atch suppl and de#and. n"or#ation that is gathered "arther down the suppl chain can (e trans#itted instantaneousl and accuratel to the supplies distri(utor. nstead o" waiting "or a hu#an to call or -A5 an order& the distri(utor can replenish in!entor to the necessar le!els or pro!ide what is needed to "ill the order as it is realied. 6. Motorola has gone "ro# #anu"acturing all its cell phones in0house to al#ost co#pletel outsourcing the #anu"acturing. 7hat are the pros and cons o" the two approaches% )ourcing is the set o" (usiness processes re,uired to purchase "oods and ser!ices. These decisions are crucial (ecause the a""ect the le!el o" e""icienc and responsi!eness that Motorola can achie!e. The Motorola production sste# "or their line o" pagers was hailed as a (rea'through in #ass custo#iation& so it was so#ewhat surprising when Motorola outsourced cell phones.. )ourcing decisions should (e #ade (ased on the total suppl chain surplus8 i" a third part can help the chain achie!e greater surplus& then the "unction is a pri#e candidate "or outsourcing. Motorola was willing to gi!e up so#e control and possi(l so#e o" its design talent and asse#(l epertise (ecause it "elt that the supplier could pro!ide product o" an appropriate le!el o" ,ualit with the responsi!eness necessar. Products and ser!ices that are outsourced are rarel (rought (ac' in0 house and should ne!er (e tied too closel to the outsourcing part$s core co#petenc. 9. How can a ho#e deli!er co#pan li'e Peapod use pricing o" its deli!er ser!ices to i#pro!e its pro"ita(ilit% Pricing is the process ( which a "ir# decides how #uch to charge custo#ers "or its goods and ser!ices. Pricing a""ects the custo#er seg#ents that choose to (u the product as well as the custo#er$s epectations. Peapod can use e!erda low pricing o" its products to ensure sta(ilit in the suppl chain& (ut can in"luence de#and ( !aring the deli!er charges. -or ea#ple& ( esta(lishing a #ini#u# order a#ount o" :6; and charging :1; to deli!er an order under :<6& Peapod pro!ides an incenti!e "or a custo#er to pile on additional ite#s to sa!e on per unit shipping. An order o!er :1;; incurs a deli!er "ee o" :<& which is the lowest deli!er charge "or a residential custo#er. Peapod also !aries deli!er charges ( ti#e o" da8 e!ening deli!er ti#es on wee'das and #orning deli!eries on )unda within narrow windows cost an etra dollar& wider deli!er windows are :1 less. The deli!er latitude allows Peapod$s deli!er dri!ers to schedule #ore e""icientl there( increasing pro"ita(ilit.
Chopra/Meindl 4/e <. 7hat are so#e industries in which products ha!e proli"erated and li"e ccles ha!e shortened% How has the suppl chains in these industries adapted% The authors cite the ea#ple o" running shoes increasing "ro# "i!e stles in the earl <;s to al#ost 2;; ( the late =;s. >ther products that ha!e seen an eplosion in !ariet include personal electronics& (e!erages& snac' and prepared "oods& entertain#ent& tires& and personal ser!ices. )uppl chains ha!e le!eraged in"or#ation sste#s& recognied the need to colla(orate on product and process design& and suppl chain eecution. The suppl chain stance has shi"ted towards a partnership orientation "ro# a "ocus on price negotiations. ?. How can the "ull set o" logistical and cross0"unctional dri!ers (e used to create strategic "it "or a PC #anu"acturer targeting (oth ti#e sensiti!e and price conscious custo#ers% The logistical dri!ers& "acilities& in!entor& and transportation& and the cross0 "unctional dri!ers& in"or#ation& sourcing& and pricing& #ust (e used in concert to achie!e the appropriate (alance o" e""icienc and responsi!eness "or the suppl chain to (e success"ul. A PC #anu"acturer that wants to deli!er product (oth ,uic'l and e""icientl can #a'e cost and ti#e trade0o""s a#ong these dri!ers to achie!e their goals. These trade o""s across dri!ers a""ord #ore "lei(ilit (ut re,uire constant !igilance as the trade0o""s within each dri!er change. n addition& so#e dri!ers #a (e altered #ore easil& e.g.& order ,uantit and transportation #edia& than other dri!ers& e.g.& location and sourcing. The trade0o""s within each dri!er are su##aried in the ta(le@ Driver
More Responsive
More Efficient
-acilities
Multiple Plants -lei(le Plants Higher n!entor Higher )peed Accurate Real Ti#e Trans#ission Responsi!e supplier Di""erential Pricing