Order Designing Distribution Networks and Applications
1. What differences in the retail environment may justify the fact
that the fast-moving consumer goods supply chain in India has
far more distributors than it has in the United States?
2. A specialty chemical company is considering expanding its
operations into Brazil, where five companies dominate the
consumption of specialty chemicals. What sort of distribution
network should this company utilize?
3. A distributor has heard that one of the major manufacturers
from which it buys is considering going direct to the
consumer. What can the distributor do about this? What
advantages can it offer the manufacturer that the manufacturer
is unlikely to be able to reproduce?
4. What types of distribution networks are typically best suited
for commodity items?
5. What type of network is best suited to highly differentiated
products?
Order Designing Distribution Networks and Applications
6. In the future, do you see the value added by distributors
decreasing, increasing, or staying about the same?
7. Why has the online channel been more successful in the
PC industry compared to the grocery industry? In the future, how valuable is the online channel likely to be in the
PC industry?
8. Is the online channel likely to be more beneficial in the early
part or the mature part of a product’s life cycle? Why?
9. Consider the sale of home improvement products at Home
Depot or a chain of hardware stores such as True Value.
Which can extract the greater benefit from going online?
Why?
10. Amazon sells books, music, electronics, software, toys, and
home improvement products online. In which product category does going online offer the greatest advantage compared to
a retail store chain? In which product category does the online
channel offer the smallest advantage (or a potential cost disadvantage) compared to a retail store chain? Why?
11. Why should an online seller such as Amazon build more
warehouses as its sales volume grows?
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