Zara Supply Chain China

Topics: Inditex, Supply chain management, Uterqüe Pages: 4 (1183 words) Published: November 27, 2012
Case Study and Exercises

Exercise #1
We were given the formula of distance , where
D – Distance from location L (distribution center) to location I (consumption point); - X coordinate of the warehouse l (distribution);
- X coordinate of the store i (consumption);
- Y coordinate of the warehouse l (distribution);
- Y coordinate of the store i (consumption).

Consequently, applying these formula in the Excel we receive the following result:

Then, multiplying the distance by the amount of demand and summing up for each relevant location, we get:

Thus, the answer is LOCAY, because it has the minimal score.

Exercise #2
Using provided formulas , where
- X coordinate of the optimal location for warehouse;
- Y coordinate of the optimal location;
- X coordinate of store i;
- Y coordinate of store i;
- Load (or Demand) of the store i,

we get

And finally

Zara's Case Study
Company Profile

Zara is one of the largest international fashion companies with 1671 stores around the globe. It is a part of Inditex holding. Inditex is one of the world's largest fashion retailers, welcoming shoppers at its eight store formats -Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe - boasting 5.693 stores in 85 markets [www.inditex.com], [www.zara.com]. In 1975 the first Zara shop was founded in Spain. In 1976-1984 In-Spain expansion takes place. In 1988 it enters Portuguese market. Followed by US and France, it quickly becomes world-brand and until 2006 it had 52 countries which held retail operations of the company. Zara concentrates on the three principles to satisfy the customer [http://ru.scribd.com/doc/27372254/Supply-Chain-Practices-of-Zara#]: Short lead Time which results in “more” fashionable clothes Lower quantities – scarce supply

More styles, which create a greater possibility of attracting needed customers. 1) Zara's designing process organized in a way such that the...