Zara Supply Chain China

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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

The answer is (8;11).

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...
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