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Unformatted text preview: -called phantom demands.
Example 2: (Seven Eleven Japan, see ) Seven Eleven Japan (SEJ) is the
largest convenience store chain in Japan. They not only outsell McDonald in Japan
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
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
used to determine the store stocking levels, as well as shelf space configuration,
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
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
6 find the order status no matter where and in which supply chain partner possession the
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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- Fall '08
- Industrial Engineering