Seven Eleven Company
SEVEN-ELEVEN JAPAN CO
Q1) A convenience store chain attempts to be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case?
Ans) There are following ways to make convenience stores responsiveness.
• To maintain high inventory level
• By removing implied demand uncertaininty.
• By quick replenishment of products or time management.
• High Information system can also make convenience store responsive and decrease the other driver cost too e.g. transportation cost, holding cost etc.
• Facilitate the customer by location and increase in capacity.
• By making strategic fit in vertical and horizontal strategies of convenience stores that can make more responsive and support to achieve the competitive strategy.
Risks:
If the convenience store maintains high level of inventory, it increases the holding cost that make convenience store less efficient.
The inventory can be wasted, because of uncertaininty of demand. In high level o f inventory there is very low margin of error in forecasting, so it can increase wasted and also increase the supply chain cost.
When the products are quick replenish in different location, it increase the transportation cost and capacity also increase the holding cost.
The fixed cost of information system is very high.
Q2) Seven-Eleven’s supply chain strategy in Japan can be described as attempting to micro match supply and demand using rapid replenishment. What are some risks associated with this choice?
Ans) There are many risk involve by using rapid replenishment strategy, that are followings:
It increases the inventory holding cost.
High no of convenience store increase the transportation cost. As seven-eleven has many convenience stores, so their vehicle has to circulate many times to be quick and responsive which
Q1) A convenience store chain attempts to be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case?
Ans) There are following ways to make convenience stores responsiveness.
• To maintain high inventory level
• By removing implied demand uncertaininty.
• By quick replenishment of products or time management.
• High Information system can also make convenience store responsive and decrease the other driver cost too e.g. transportation cost, holding cost etc.
• Facilitate the customer by location and increase in capacity.
• By making strategic fit in vertical and horizontal strategies of convenience stores that can make more responsive and support to achieve the competitive strategy.
Risks:
If the convenience store maintains high level of inventory, it increases the holding cost that make convenience store less efficient.
The inventory can be wasted, because of uncertaininty of demand. In high level o f inventory there is very low margin of error in forecasting, so it can increase wasted and also increase the supply chain cost.
When the products are quick replenish in different location, it increase the transportation cost and capacity also increase the holding cost.
The fixed cost of information system is very high.
Q2) Seven-Eleven’s supply chain strategy in Japan can be described as attempting to micro match supply and demand using rapid replenishment. What are some risks associated with this choice?
Ans) There are many risk involve by using rapid replenishment strategy, that are followings:
It increases the inventory holding cost.
High no of convenience store increase the transportation cost. As seven-eleven has many convenience stores, so their vehicle has to circulate many times to be quick and responsive which