Solution SCM Ch1 2 Documents
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Assignment 1
Supply Chain Management
Topic: Understanding the Supply Chain
Submitted by: Submitted to:
Md. Faisal Hossain Md. Md. Akram Hossain
EMBA Spring Semester 2013 Assistant Professor
ID: 61120-13-017 MIS, University of Dhaka
Date: 23-01-2013
Department of Management Information Systems
Gateway
Why did Gateway have multiple production facilities in the US? What advantages or disadvantages does this strategy offer relative to Dell, which has one facility?
US was main market of gateway
No inventory stores direct supply no contract with any shipping company
Advantages
Low price raw material
Cheaper logistics
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Solution SCM Ch1 2 Documents
Fly UP
Shipping
Tax Incentives
Disadvantages
cost increases
Difficult to manage quality
Different polices for employees
What factors did Gateway consider when deciding which plants to close?
The markets which were saturated showing poor results, specially Malaysia plant were have high loses
Why does Gateway not carry any finished goods inventory at its retail stores?
Gateway was really clever in deciding whether to keep such items in inventory or not. As gateway knew that people don’t wait for FMCG product for the alternative but when its about computers, customers could wait. Doing so, they had no inventory on risk.
Should a firm with an investment in retail stores carry any finished goods inventory? Yes, it can
Is the Dell model of selling directly without any retail stores always less expensive than a supply chain with retail stores?
Yes, the DELL model of selling directly without retail stores is always less expensive than a supply chain with retail stores because of a number of cost cutting factors which make the