HW 1 - 1. 3) What are some strategic, planning, and...

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1. 3) What are some strategic, planning, and operational decisions that must be made by an apparel retailer like The Gap? Strategic decisions involve deciding how to structure the supply chain over long term. An apparel retailer must decide how they will acquire necessary materials, from what sources , and how they will store them (in warehouses or in house). They must also decide how they are going to transport the materials, which includes modes of transportation and appropriate information systems. They must also decide how often to resupply stores, which products to supply to which stores, sales and promotion calendars, and return policies. To correspond with evolving trends, the Gap should create a very responsive supply chain. Though more expensive and less efficient, this supply chain will better correspond to customer needs. Planning decisions include structuring the supply chain over the next quarter or year. An apparel retailer must forecast demand for the upcoming period, so that they will know which locations to stock. Planning decisions help retailers limit inventory costs, allowing for a surplus. Operational decisions involve deciding how to structure the supply chain over the next day or week. Because the strategic and planning decisions are already defined, operational decisions involve handling customer requests at the best way possible. Because a responsive supply chain was set up, it will be more able to respond to individual customer orders. Fulfilling these individual orders involves the allocation of inventory, production, and
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This document was uploaded on 11/04/2011 for the course BUSI 560 at UNC.

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HW 1 - 1. 3) What are some strategic, planning, and...

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