Buy Technology And Information Management

Buy Technology And Information Management
1. Consider two products with the same margin carried by a retail store. Any leftover units of one product are worthless. Leftover units of the other product can be sold to outlet stores. Which product should have a higher level of availability? Why? 2. What transportation challenges does online grocer Peapod face? Compare transportation costs at online grocers and supermarket chains.
Step 2: Create a Plan
1. Determine which product should have a higher level of availability 2. Research and describe the challenges online grocer Peapod faces
Step 3: Execute the Plan
1. Determine which product should have a higher level of availability The leftover units of a product which become worthless at the end of the selling season should have a higher level of product availability than the leftover units of the other product that can be sold to outlet stores because unsold items for this product are useless and no salvage value. Maintaining higher level of availability for this product will help a firm match demand uncertainty and maximizes profits.
2. Research and describe the challenges online grocer Peapod faces Peapod is responsible for congestion in the releasing area and has to bear a high-priced outbound transportation costs. These kinds of facilities were not available with traditional grocers. Peapod delivers its items in trucks that are climate controlled. These kinds of trucks should be offered with the incentive facilities for peak and off-peak seasons for the goods to be delivered at the right time to the customers. Customers are aware of the transportation constituent of their purchase and Peapod can encourage customers to purchase products of a higher amount. Peapod and traditional grocers need to pay inbound transportation charges for their merchandise. There does not seem to be a large margin in this unless a trader has a market share to gain cost benefits.
Step 4: Check your Work
Buy Technology And Information Management
Using the book as reference and reading over the chapters. I can be sure my assumptions made for this answer are correct with minimal amounts of error.
2. Facilities/Network Design
Step 1: Define the Problem
1. How do the location and size of warehouses affect the performance of a firm such as Amazon.com? What factors should Amazon.com take into account when making this decision? 2. Amazon.com has built new warehouses as it has grown. How does this change affect various cost and response times in the Amazon.com supply chain? 3. Consider a firm such as Dell, with very few production facilities worldwide. List the pros and cons of this approach and why it may or may not be suitable for the computer industry.
Step 2: Create a Plan
1. How do location and size of warehouses affect Amazon.com performance and what factors should be taken into account when making these decisions? 2. How does new warehouses affect Amazon.com response time and costs? 3. What are the pros and cons of having very few production facilities worldwide?
Step 3: Execute the Plan
1. How do location and size of warehouses affect Amazon.com performance and what factors should be taken into account when making these decisions? Responsiveness and efficiency of any company depends upon its size and location of warehouses. It was a time when Amazon used to run its bookstore with only one warehouse, which was established in Seattle. This warehouse was not capable of meeting the demands of customers as they were ineffective in delivering the products at given time. Due to single warehouse, its cost increases with less responsiveness of customers. Since the time, they supplemented warehouses in different locations for distribution purpose, their demand increased at faster rate. This spreading of warehouses helped the customers to get products on time due to proximity of warehouses, where shipment can be done from locations nearer to the customer. Amazon should work on areas underserved, which can prove to be profitable, responsive and efficient from the company’s point of view.
Buy Technology And Information Management
2. How does new warehouses affect Amazon.com response time and costs? With the change in figure of locations, facilities and capacities, there is a change in logistic and facility cost. Amazon’s cost increases with increase in the warehouses at different locations. This cost includes inventory, facility and logistics cost. This result in higher fixed cost that can be utilized for diminishing transportation cost. Fixed cost can be reduced by scattering the warehouses at different locations for distribution purpose, which helps in adding the responsiveness at same expenditure or same responsiveness at less cost. Inventory cost can be reduced by distributing the warehouses at different locations. Inventory costs also changes with an increased number of warehouses.
3. What are the pros and cons of having very few production facilities worldwide? The greatest benefit the Dell has is that it can be located in a large number of countries, which will help in reducing facility cost by removing tariffs and lessening risk of demand and exchange rate. The biggest drawback with Dell is its lack of responsiveness from customers. Customers wait for their order, because they know that it will take enough time to proceed. Orders are further delated when shipped from other production facilities. Orders are further delayed when shipped form other production facilities that are listed on the web site. Cost of shipping may be an area of concern for customers, but they worth provided by Dell is quite high that this shipping cost seems negligible.