Zara Supply Chain Management

Gateway : “A Direct Sales Manufacturer”

1. Why did Gateway have multiple production facilities in the US ? Because Gateway has a strategy that avoid carrying any finished-good inventory at the retail stores and simply use the stores for customer to try the PCs and obtain help in deciding on the right configuration to purchase. What advantages or disadvantages does increasing the number of production facilities offer ?

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The disadvantages :

How does Gateway decide which production facility will produce and ship a customer order ? When the customer placed their order, Gateway will decide PCs were manufactured to order and shipped from one of the assembly plants. 2. What factors did Gateway consider when deciding which plants to close ? Losing a significant amount of money be the key of the decision. 3. Why did Gateway choose not to carry any finished-goods inventory at its retail stores ? Because Gateway applied Customer Relationship Management for they strategy. 4. Should a firm with an investment in retail stores carry any finished-goods inventory ? No, it’s not necessary

What are the characterize products are the best manufactured to order ?

5. Is the Dell model of selling directly without retail stores always less expensive than a supply chain with retail stores ?
6. What are the supply chain implication of Gateway’s decision to offer fewer configurations ?

Zara : Apparel Manufacturing and Retail

1. What advantage does Zara gain against the competition by having a very responsive supply chain ? 2. Why has Inditex chosen to have both in-house manufacturing and outsourced manufacturing ? Why has Inditex maintained manufacturing capacity in Europe even though manufacturing in Asia is much cheaper ? 3. Why does Zara source products with uncertain demand from local manufacturers and products with predictable demand from Asian manufacturers ? 4. What advantages does Zara gain from replenishing its stores multiple times a week compared to a less frequent schedule ? How does the frequency of replenishment affect the design of its distribution system? 5. What information infrastructure does Zara need in order to operate its production, distribution, and retail network effectively ?

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