assignment (case study) uncompleted Q1 & Q2

1. By: ihabMohamedtarek
1
College of International transport and logistics
Ihab Mohamed Tarek
ID: 12105180
Introduction to Supply chain management
Dr. Ahmed tarek
Seven-Eleven

2. By: ihabMohamedtarek
2
1-What inventorytheygoingtouse (productavailabilityorproductVariability)
Whento transport
Where the facilitiesgoingtobe (size,location,capacity)
The risks in thissystemare the costs of demanduncertainty.If demandpatternschange dramatically,or
the customerbase changes,thenitis leftwithanoperationthatisnot needed.
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3- Seven-ElevenJapanhaschosento be highlyresponsiveoperationandhaschosena supplychain
designthatsupportsthis drivers.
Facilitylocation
itsfundamental networkexpansionpolicyonamarketdominance strategy.Entryintoany new market
was builtarounda clusterof 50 to 60 storessupportedbya distributioncenter.Suchclusteringgave
Seven-ElevenJapanahigh-densitymarketpresenceandallowedittooperate an efficientdistribution
system.Thisstrategycan lowerthe inventoryhandlingcost.
Inventorymanagement
The fooditemswere classifiedinfourbroadcategories:
 chilled-temperature itemsincludingsandwiches,delicatessenproducts,andmilk
 warm-temperatureitemsincludingbox lunches,rice balls,andfreshbread
 Frozenitemsincludingice cream, frozenfoods,andice cubes
 Room-temperature itemsincludingcannedfood,instantnoodles,andseasonings.
Seven-Elevenrespondsveryquicklytoorder,withstore manage rapidreplenishmentorderslessthan
one day before theyare supplied.Thatreduce the inventoryholdingcost.
Transportation
The supplierdidn’tdeliveryproductstoshopdirectly,insteadof deliveringthemtothe distribution
centerthat can minimize the trucksrunsaswell astransportationcost
Informationinfrastructure
The Total informationSysteminstalledineveryoutletandlinkedtoheadquarter,suppliers,andthe
Seven-Elevendistributioncenters. The firstonline networklinkingthe headoffice,stores,andvendors
was establishedin1979, thoughthe companydidnot collectpoint-of-sales(POS) informationatthat
time.In1982. Until 1991 an integratedservicesdigitalnetwork(ISDN) wasinstalled.Linkingmore than
5,000 stores,itbecame one of the world'slargestISDN systemsatthat time.
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3. By: ihabMohamedtarek
3
4- The advantage of using distributioncentersystemisreducingthe numberof vehiclesof delivery
service toeach store.
It ismore appropriate touse directstore deliverywhenthe goodswithshortexpiredperiodsothatit
can minimize the time of transporting.
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5- It was successful systeminjapan,becausethere isnoadditionaltransportationcostfromdelivering
the product to consumerhomes.Injapan mostof Japanese customerspreferredtopickuptheironline
purchasesat the local convenience store where theyare visit theirlocal convenience storesmore
frequently.
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7- Advantage is lesstransportation,material handling,andlaborcosts andthat reducedthe delivery
time spentat eachstore. Seven-Eleven,offeredthree times- a-daystore deliveryof all (of the fast-food
items). Suchas Bread and otherfreshfoodwere deliveredtwiceaday.The distributionsystemwas
flexible enoughtoalterdeliveryschedulesdependingoncustomerdemand.
The disadvantage unable toreduce the numberof vehiclesrequiredfordailydeliveryservicetoeach
store,eventhoughthe deliveryfrequencyof eachitemwasquite high.
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