Ikea

Career MBA Program BUS 575 Operation management 05/21/2012 IKEA Supply Chain Analysis Submitted in partial fulfillment of the requirements for the degree of Master of Business Administration Yanjing Ge Youyou Zhang Yi Xie Pengfei Zhao College of Business and Public Management Catalogue Abstract ...3 Introduction.3-4 IKEA Supply Chain Strategy..4-6 Supply Chain Management of IKEA..6-9 3.1. Supplier Management..6-7 3.2. Store Design.7-8 3.3. Warehouse Management..8-9 4. IKEA Supply Chain9-13 4.1. IKEA Supply Chain System.9-11 4.2. IKEA Supply Chain Planning...11-13 4.2.1. Planning concept overview..11-12 4.2.2. Sales planning..12-13 4.2.3. Demand planning.13 5. Problems.....14-15 5.1. Lack of Central Coordination.14 5.2. Lack of Accurate Sale Forecasts.14-15 5.3. Inventory Costs are too high...15 6. Recommendations.15-16 7. References.17-18 Abstract This article is an analysis of the IKEAs supply chain. IKEAs supply chain is globally with sales in more than 250 own stores in 24 countries and 32 external franchisees in 16 countries. It has special supplier management, store design, and warehouse management. IKEA Supply Chain system includes IOS, TSO, material and suppliers, DC and IKEA store. IKEA global planning has seven processes. Sale planning and demand planning are in this article. IKEAs supply chain was operated really successful, however, it still exist some problems, like lack of central coordination, inaccurate sale forecasts, and high inventory costs. In the end, this article will provide some recommendations to solve those problems. Introduction IKEA, founded in 1943, is one of the best home furniture company in the world whose, and its vision is To provide better life for everyone. IKEA provides modern and fashionable low cost furniture for over 38 countries with 301 stores. It is the largest furniture retail chain in the world and boasts a range of 12000 products, including home furniture, accessories and