Bull whip effect 3

Example 2 seven eleven japan see 18 seven eleven japan

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Unformatted text preview: -called “phantom” demands. Example 2: (Seven Eleven Japan, see [18]) Seven Eleven Japan (SEJ) is the largest convenience store chain in Japan. They not only outsell McDonald’ in Japan’ s s fast food market, but also rank number 2 in paperback and magazine sales and number 1 in battery and ladies’ stockings sales. Their inventory turns is 55 per year, in contrast with Wal-Mart’ 6.7. The secret of their success is the extensive use of POS transactions s data. The headquarters receives POS data from stores, along with the gender and estimated age of the customer (entered on a separate key pad). This way SEJ can analyze the sales trend by item, by hour, and by customer’ age and gender. This information is s used to determine the store’ stocking levels, as well as shelf space configuration, s merchandising, and new product development. The POS data are also transmitted to wholesalers and manufacturers for better production schedule and new product development. By sharing the retail POS data with SEJ’ headquarters, wholesalers and s manufacturers, SEJ maintains the largest per-square-foot sales in the industry. 2.3. Order Status for Tracking/Tracing A typical supply chain involves multiple functions and independent companies in the delivery of goods and services to the end consumer. As a result, it is difficult for a customer to find out the status of an order, since the customer does not always know who else besides the retailer is involved or where in the supply chain the order is being processed. Recently, supply chain members started sharing their order status information, so that a high rate of first-call problem resolution could be achieved. For example, partners in the supply chain may hot-link their web sites or allow access to each other’ order databases. By calling the retailer or visiting its web site, the customer can s 6 find the order status no matter where and in which supply chain partner’ possession the s order is. This one-stop inquiry is a big a contrast to the traditional process in which a customer is referred several times to other chain pa...
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