Chapter3 Homework

Topics: Supply and demand, Supply chain management, Inventory Pages: 4 (853 words) Published: February 18, 2013
IMSE 5655 Homework #1 and Case Study #1
Due: February 11th, 2013

Homework #1

1- Page 18, #5.
Consider the supply chain involved when a customer orders a book from Amazon. Identify the push/pull boundary and two processes each in the push and pull phases. Push/pull view: processes in a SC are divided into two categories depending on whether they are executed in response to a customer order (pull) or in anticipation of a customer order (push) A customer orders a book from Amazon is the pull process.

1) Pull/Pull Boundary
In my views, Amazon’s initial supply chain strategy is a pure pull process. There is no boundary. They only purchase books from distributors after customer’s ordering books.

[pic] Figure 1- Push/Pull Process for Amazon Supply Chain for selling books (Initial) After several years of development, Amazon has 8 warehouses in U.S where inventories stocked. So, in the situation, the push/pull boundary exists between customers and Amazon (a retailer). [pic]

Figure 2- Push/Pull Process for Amazon Supply Chain for selling books (Year 2008)

2)Two Processes in the push and pull phases

Pull phase: (1) Customers ordering books. (2)Shipping books to customers. Push phase :( 1) procurement of books. (2) Stock replenishments.

2- Page 40, #5
Reconsider the previous four questions for other companies such as, a supermarket chain, an auto manufacturer, and a discount reailer such as Wal-Mart.

How would you characaterize the competitive strategy of Walmart? What are the key customer needs that Wal-Mart aims to fill? The Competitive strategy of Walmart is to provide high availability of a variety ofproducts of reasonable quality at low prices. Key customer needs for customers of Walmart is to get variety of daily goods that can satisfy them with low price and good quality. These needs that Walmart aims to fill. 1. Where would you place the demand faced by ...on...
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