HW1KEY - ESI 6323 Homework 1 Suggested Answers Ch. 2 DQ 6...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ESI 6323 Homework 1 Suggested Answers Ch. 2 DQ 6 Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies. Wal-Mart’s competitive strategy is based on three dimensions: high product availability, a wide variety of goods, and everyday low pricing. Consistently providing a wide variety of goods at low prices presents a challenge to many retailers due to the costs required in managing transportation, inventory, facilities, and information. Their pioneering use of “crossdocking” and internal distribution system management allows for decreased transportation costs for a wide variety of goods while cutting inventory needs, i.e., it allows them to strike a balance between high product availability (responsiveness) and cost (efficiency) that meets their customers expectations. Their supply chain strategy also capitalizes on the relatively stable demand for their products, which is a function of their infrequent usage of product promotions and their everyday low pricing strategy. Finally, Wal-Mart recognizes its suppliers capabilities and has partnered with key suppliers to allow these suppliers to manage replenishments through vendor managed inventory (VMI) enabled by information sharing agreements. In summary, Wal-Mart’s supply chain was constructed and is managed to enable providing a wide variety of stable-demand items at consistently low prices, which is their competitive strategy. Ch. 3 DQ 8 What are some industries in which products have proliferated and life cycles have shortened? How have the supply chains in these industries adapted ? Product proliferation (wider variety) and shortened life cycles are apparent in more and more industries over time as consumers become increasingly demanding for items that fit their unique desires. The most obvious industries in which the combination of increased product variety and short life cycles can be found is in the high-tech industries such as PCs, cellular phones, and multimedia products. Some of the supply chains in these industries have adapted well while others have not. Many successful companies have moved towards a factory direct, make to order model, such as that implemented at Dell. Dell’s assemble to order strategy and factory direct ordering enable them to customize
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

HW1KEY - ESI 6323 Homework 1 Suggested Answers Ch. 2 DQ 6...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online