The logistical driver of inventory encompasses all raw materials, work in process, and finished goods within a supply chain. A grocery store can be more responsive if it offers a broader variety. A grocery store should use products that can last for a significant amount of time and does not hold a high demand in its current time.
2. How could an auto manufacturer use transportation to increase the efficiency of its supply chain?
An auto manufacturer could pick either a quick transportation with a high cost or a slow transportation with a lower cost by knowing the reorder level of each raw material you are ordering you can increase your efficiency to your customers.
3. How could a bicycle manufacturer increase responsiveness through its facilities?
Locating a facility close to the market will increase responsiveness at the cost of decreased economies of scale that might be achieved with a centralized location. A facility that is under capacity will be less responsive than a facility that is appropriately sized or has excess capacity.
4. How could an industrial supplies distributor use information to increase its responsiveness?
Accurate information can improve responsiveness by helping an industrial supplier better to match supply and demand. Information that is gathered further down the supply chain can be transmitted instantaneously and accurately to the supplies distributor. Instead of waiting for a human to make an order, the distributor can replenish inventory to the necessary levels or provide what is needed to fill the order as it is realized.
5. Motorola has gone from manufacturing all its cell phones in-house to almost completely outsourcing the manufacturing. What are the pros and cons of the two approaches?
Sourcing decisions should be made based on the total supply chain surplus; if a third party can help the...