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The type of supply chain model that Limited uses is the Responsive Supply Chain model. This model consists of the following factors, the demand is unpredictable, because the products the company creates or produces may not be one that its customers find appealing which reduces demand or they could not be acceptable nor wanted by customers. The forecasts for demand of its products canresult in high forecasts errors because Limited is not relying on suppliers to provide their end product but to supply the ingredients for lack of a better word, to contribute to creation of their end product. Due to Limited's ability to go from the concept for a new garment to the store shelf in 1000 hours, they have the benefit of development speed, fast delivery times, customization, volume flexibility, variety, and producing top quality products. They can customize their product, there's no necessity to buy in large bulk to reduce costs and they can ensure that their product is original and top quality. Limited has the capability to frequently provide new products from their own creativity and imagination. Limited follows the MTO (Make-To-Order) design of the Responsive Supply Chain model. They provide a high variety of their product.
3. Canon, a Japanee manufacturer of photographic equipment, decided against offshoring and kept its manufacturing and new product development processes in Japan, which has relatively high labor cost. In contrast, GM, headquartered in the United States, has a joint venture with Shanghai Auto Industry Corporation (SAIC) to produce cars in China. Given our discussion of outsourcing, offshoring, next-shoring, and supply chain design, discuss how these two seemingly diverse decisions could be supportive of each company's operations strategy.