Supply Chain Responsiveness Essay

701 Words 3 Pages
Supply Chain Effectiveness Versus Supply Chain Responsiveness
Student’s name

The Supply Chain Vice President, Tedra Grav, advocates for efficiency as opposed to responsiveness which in my view is a good strategy. According to Chopra and Meindl (2015), responsiveness is measured by a supply chain’s ability to respond to high ranges of quantities demanded, meet short lead times, handle a large variety of products, build highly innovative products, meet a high service level, and handle supply uncertainty. They however go on to describe supply chain effectiveness as the inverse of the cost of making and delivering a product to a consumer. Responsiveness as opposed to efficiency lowers costs incurred by the company in
…show more content…
If forecasted demand shows that the store sells 7,000 pairs of shoes per week across the 700 Feets stores, and the vendor takes 2 months to deliver the order, it would call for Feets to set is minimum inventory level at 56,000 pairs. When the invetory reaches this predetermined minimum level, the supply chain system may then place an order according to the forecasted demand to replenish the stores. This system will aid in lowering the percentage of stock-outs even for items that come in small quantities as is expected in the new Fashion Squared store. It will also reduce costs incurred as a result of ordering beyond demand.
How does shipping shoes from China affect my analysis?
Shipping from China would require for the company to put in to perspective factors that may influence delivery. The supply chain system should factor in lead time. However lead time may be influenced by factors beyond the control of Feets as a retail company. Some of these factors may be the political climate of China or machine breakdowns, which may cause delay in delivery. In order to ensure product availability even in such eventualities the board should come up with strategies to cushion the company from adverse effects from these unpredicable factors
Can the result be a push or pull

Related Documents