Session9handout

Session9handout - Supply Chain Modeling...

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Supply Chain Modeling Atalay Atasu
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Outline of Today’s Class What is innovative about Zara? What are the major  differences in Zara’s supply chain when compared  “fashion” game? What do you think of the programs  launched by Peter Salsbury in response to the troubles  What, if any, guidance would you offer for turning  parent company? 
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Classic Textile Business Process: 12 month leadtime Design Purchase Raw Mat Mfg Dist Sell Discount M&S Business Process follows the classic textile business process with 12 months leadtime PUSH mentality One year before store delivery Top 15 suppliers accounted for 80% of turnover Warehouses hold seven weeks of inventory Majority of stores owned by M&S and EDI link between store warehouse and head- office
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Why is profitability in apparel so low when margins are so high? Expected Demand Excess stock : Value loss due to discount sales when actual demand is lower than expected demand Excess Demand : Value loss due to unrealized sales when actual demand is higher than expected Perfect Forecast : Does not exist in real life! Lost Sales Waste
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Customer segments? where long lead times are required  corresponding to different collections: permanent,  seasonal, trends, etc.
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Recent Problems at M&S
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, Nov 16, 1998 Marks & Spencer, the $ 13.7 billion retailer, sells one out of 4 men's suits bought in the country. Former Prime Minister Margaret Thatcher buys her underclothes there, along with 40% of British women. Chances are nearly everyone on a British street is wearing something from Marks & Sparks, as it is affectionately nicknamed. Although the rainy summer hurt clothing sales at many retailers,
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Session9handout - Supply Chain Modeling...

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