Supply Chain
1. Amazon.com, Peapod, Dell, and many furniture manufacturers use push-pull supply chain strategies. Describe how each of these companies takes advantage of the risk-pooling concept.
To better understand the strategies used by the three (3) companies and furniture manufacturers, the definition of Push or Pull is established below:
Push Strategies – when the manufacturer uses its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users.
Pull Strategies – when a manufacturer uses advertising and promotion to persuade consumers to ask intermediaries for the product thus inducing the intermediaries to order it.
The Figure below illustrates the Push-Pull bounderies of the three (3) companies and furniture manufacturers: As the services and products needed by the Customers (Pull) flow along the pipeline, they will be sent (Push) to the Furniture Comapanies for Production. This process will be the same for Dell in assemblying their Computers, Amazon.com and Peapod will act as distributors using the
2. Explain how demand for a product like Television can be shaped? How does this compare to ways in which demand for a product like Canned Soup can be shaped?
The demand difference between the Television and Canned Soup is both variable and complimentary.
Televisions, in a very global and technology based environment, the Television had become a commodity comparable to rice, best thing is – television don’t expire. Mass Media, Politics, Health, Sports, Emergency Management and Education can now be done using the Television – almost all household, commercial and work place has one. Manufacturers are now fighting for the most advanced technology available to produce the most economical and wide platform. The television does not choose race, color or location – it basically became a requirement. The need of man for Entertainment and Information is what fuels the continuous development of
To better understand the strategies used by the three (3) companies and furniture manufacturers, the definition of Push or Pull is established below:
Push Strategies – when the manufacturer uses its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users.
Pull Strategies – when a manufacturer uses advertising and promotion to persuade consumers to ask intermediaries for the product thus inducing the intermediaries to order it.
The Figure below illustrates the Push-Pull bounderies of the three (3) companies and furniture manufacturers: As the services and products needed by the Customers (Pull) flow along the pipeline, they will be sent (Push) to the Furniture Comapanies for Production. This process will be the same for Dell in assemblying their Computers, Amazon.com and Peapod will act as distributors using the
2. Explain how demand for a product like Television can be shaped? How does this compare to ways in which demand for a product like Canned Soup can be shaped?
The demand difference between the Television and Canned Soup is both variable and complimentary.
Televisions, in a very global and technology based environment, the Television had become a commodity comparable to rice, best thing is – television don’t expire. Mass Media, Politics, Health, Sports, Emergency Management and Education can now be done using the Television – almost all household, commercial and work place has one. Manufacturers are now fighting for the most advanced technology available to produce the most economical and wide platform. The television does not choose race, color or location – it basically became a requirement. The need of man for Entertainment and Information is what fuels the continuous development of