Supply Chain Management at World Co. Read the World Co. Case and develop written responses to the following questions. How does World Co. Achieve the short response times described in the case? The lead time at U.S. Department stores often exceeds six months while World Co.’s is two weeks. Article (PDF-3MB). The focus of the supply chain management function has shifted to. Digital supply chain business models, and to transform the company. The digital capabilities of the organization are very limited.

Pages: 8 (2494 words) · Style: Harvard · Bibliography Sources: ≈ 6 · File: .docx · Level: Master's · Topic: Business

SAMPLE EXCERPT . . .
It has a major impact on cash flow, as sales have been made, but the cash for them has not been realized.
Supply chain problems also create problems with inventory control and days that stock remains in inventory before profits from it are realized. Supply chain issues affect overhead costs, due to the need to ramp up production once the bottleneck in production has been resolved. Supply chain problems create many problems throughout all areas of the operation. As the supply chain continues to expand on a global basis, so does supply chain risk due to disruption of the supply chain (Schmitt & Singh, 2009). As the supply chain becomes more complex, the chance for catastrophe at any juncture in the system becomes increased. The Japanese disaster is only one example of what could happen to disrupt the supply chain.
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for $19.77 The problem with supply chain issues of any type is that orders are not being fulfilled. Regardless of the reason, the sales momentum that attracted the customer to the product and that led to their purchase of the item is lost. Much sales technique depend on getting the customer interested, getting them hooked and then getting the product into their hands before they change their mind. When an item sits on order for an extensive length of time, the customer has a chance to reconsider their purchase. There are a number of customers who will still decide that they want the item, regardless of the wait. However, other customers might become impatient and check out the competition. They might decide to cancel their order, resulting in lost sales. This is a key reason for taking extra precautions to make certain that supply chain interruptions do not cause excessive delays in getting the product to the customer.
Solutions to the Supply Chain Problem

Term Paper on Purchasing and Supply Chain Management: Assignment

The Japanese earthquake taught everyone several important lessons about supply chain management. It highlights the need for contingencies and risk management strategies to protect supply and protect order and sales. Apple already takes several measures to help avoid disruption of their supply chain. Unfortunately, they depended heavily on many major components from Japan that were essential to their product. They suffered better than some of their competitors and worse than others.
Apple has several policies that helped to pad them from supply chain interruptions. Investors typically forgive supply chain interruptions, as long as demand is not affected (Frommer, 2011). Demand was stronger than ever for Apple's products, which means that investors should not see a reason to downgrade the stock and it should not affect stock price (Frommer, 2011).
Apple takes several measures that allowed them to survive the Japan earthquake disaster. They have a policy of pre-buying and pre-paying components (Frommer, 2011). This shielded them from many of the price shocks felt after the earthquake and it made them a supplier priority as soon as the Japanese plants came back online and were able to get components out for shipment.
Supplier diversification is a key supply chain risk reduction strategy. As the supply chain grows to include an increasingly global geographic territory, the chances for disruption of the supply chain increase. Having a number of alternate suppliers is always an important supply chain risk management strategy. This high standards that Apple holds all of their suppliers to helps them to maintain quality if alternate suppliers are need to be called into action. The Japanese earthquake highlighted the need to develop a geographically diverse network of suppliers as well. The earthquake in Japan was so widespread that it had a larger impact than a localized event.
Apple has an effective supplier diversification policy, but the Japanese earthquake highlights the need for geographically diverse suppliers as well. Some of the components in the iPad2 are only made by a single supplier, such as the touchpad glass (Rassweiler, 2011). When this component was disrupted by the earthquake, manufacture stopped completely. Apple needs to examine the risks associated with single supplier, highly specialized components, against the financial costs of acquiring secondary suppliers for all components. Common components are less problematic than highly specialized components. This principle stands for any manufacturing process, not just consumer electronics.
The Japanese earthquake was a great teacher about risk management in the supply chain. Apple had several strategies in place that reduced its vulnerability in some cases. However, it also discovered that highly specialized single supplier components still had the ability to halt the entire system, regardless of all of the other good measures that they had taken combined. This case highlights the importance of supplier diversification and the need to have a backup supplier for every component in the manufacturing process. This case demonstrates how the inability to supply even one component in a complex process, regardless of how insignificant the component might seem has the ability to stop the supply chain dead in its tracks. Apple is an excellent case for the study of supply chain risk in the event of a disaster.
References
Apple Inc. 2009. Suppler Responsibility. 2010 Progress Report. Available at: < http://images.apple.com/supplierresponsibility/pdf/L418102A_SR_2010Report_FF.pdf. > [Accessed May 18, 2011.}
Frommer, D. 2011. Gene Munster: Apple Supply Chain Temporarily Affected By Japan Earthquake, But 'Demand Stronger Than Ever' (AAPL). March 17, 2011. SF Gate. Available at: < http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/03/17/businessinsider-gene-munster-apple-supply-demand-2011-3.DTL >. [Accessed May 18, 2011].
Linzmayer, Ronald W. 1999. Apple Confidential: The Real Story of Apple Computer, Inc. No Starch Press. Available at: < http://extras.denverpost.com/books/chap0411h.htm. > [Accessed May 18, 2011]
Rassweiler, A. 2011. iSuppli press release: Japanese Earthquake Poses Potential Supply Problems for iPad 2, March 17th 2011. iSupply. Available at: < http://www.isuppli.com/Teardowns/News/Pages/Japanese-Earthquake-Poses-Potential-Supply-Problems-for-iPad-2.aspx >. [Accessed May 18, 2011]
Schmitt, A. & Singh, M. 2009. Quantifying Supply Chain Disruption Risk Using Monte Carlo and Discrete-Event Simulation. Proceedings of the 2009 Winter Simulation Conference. Available at: < http://www.informs-sim.org/wsc09papers/116.pdf >. [Accessed May 18, 2011]
Trefs Team. 2011. Supply Chain Issues Resurface for Apple. May 16, 2011. Trefis. Available at: < http://www.trefis.com/articles/57939/supply-chain-issues-resurface-for-apple/2011-05-16… [END OF PREVIEW] . . . READ MORE

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The Center supports the production of research publications that give new perspectives and influence the course of research and teaching in the field.

Reliability or Inventory? Analysis of Product Support Contracts in the Defense Industry, (2015), Morris Cohen, S. Kim and S. Netessine, chapter in “Information Exchange in Supply Chain Management,” edited by Albert Ha and Chris Tang, Springer.

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Bob Hayes: Forty Years of Leading Operations Management into Uncharted Waters, (April 2007), Marshall Fisher, (forthcoming) Production and Operations Management, OPIM Working Paper, The Wharton School.

Retail Assortment Optimization: An Attribute Based Approach, (February 2007), Marshall Fisher, Ramnath Vaidyanathan, OPIM Working Paper, The Wharton School.

Assortment Planning: Review of Literature and Industry Practice, (2007), Grhan Kk, Marshall Fisher, Ramnath Vaidyanathan, (forthcoming) Retail Supply Chain Management, Eds. N. Agrawal and S. A. Smith, Kluwer Publishers.

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Joint Assortment Selection and Inventory Planning under Consumer Substitution: Methodology and Application, (2007), Gurhan Kok and Marshall Fisher, Operations Research, Vol. 55, No. 6, pp. 1001-1021.

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An econometric analysis of inventory turnover performance in retail services, (February 2005), Vishal Gaur, Marshall Fisher and Ananth Raman, Management Science Vol. 51, No. 2, p. 181-194.

An Empirical Analysis of Forecast Sharing in the Semiconductor Equipment Supply Chain, (2005), Morris Cohen, C. Terwiesch, T. Ho and J. Ren, Management Science, Volume 51, No. 2.

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Managing Variety for Assembled Products: Modeling Component Systems Sharing, (Spring 2003), Kamalini Ramdas, Marshall Fisher and Karl Ulrich, Manufacturing & Service Operations Management, Vol. 5, No. 2, p. 142-241-156.

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A Threshold Inventory Rationing Policy for Service Differentiated Demand Classes, (June 2003), Morris Cohen,Vinayak Deshpande, Karen Donohue, Management Science, Vol. 49, Issue 6: 683-703.

Telephone Call Centers: Tutorial, Review, and Research Prospects, (Spring 2003), Noah Gans, Ger Koole, Avishal Mandelbaum, Manufacturing & Service Operations Management, Vol. 5, Issue 2: 79-141.

Managing Variety for Assembled Products: Modeling and Component Systems Sharing, (Spring 2003), Marshall Fisher, Kamalini Ramdas,Karl T. Ulrich, Management & Service Operation Management, Vol. 5, Issue 2: 142.

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What is the Right Supply Chain for Your Product?, (March/April 1997), Marshall Fisher, Harvard Business Review.

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Valuing Operational Flexibility Under Exchange Rate Risk, (January-February 1996), A. Huchzermeier and Morris Cohen, Special Issue of Operations Research on New Directions in Operations Management, Vol. 44, No. 1, pp. 100-113.

Working Papers

Benchmarking Global Production Sourcing Decisions: Why and Where Firms Off- and Reshore, (2016), Morris Cohen, Shiliang Cui, Ricardo Ernst, Arnd Huchzermeier, Panos Kouvelis, Hau Lee, Hirofumi Matsuo, Marc Steuber and Andy Tsay, Wharton School Operations, Information and Decisions Working Paper.

Does Online Learning Work in Retail?, (January 2015), Marshall Fisher, Santiago Gallino, Serguei Netessine, Wharton School Operations, Information and Decisions Working Paper.

Competition-Based Dynamic Pricing in Online Retailing: A Methodology Validated with Field Experiments, (January 2015), Marshall Fisher, Santiago Gallino, Jun Li, Wharton School Operations and Information Management Working Paper.

Global Operations Strategy: A Chinese Perspective, (2015), Morris Cohen, Y. Chen, S. Cui, M. Dong, S. Liu and D. Simchi-Levi, Wharton School Operations, Information and Decisions Working Paper.

Joint Exchange and Stocking Policies for Repairables, (2015), S. Bitton, Morris Cohen, and I. Cohen, Wharton School Operations, Information and Decisions Working Paper, under review.

Manufacturing Sourcing in a Global Supply Chain: A Life Cycle Analysis, (2015), Shiliang Cui and Morris Cohen,Wharton School Operations, Information and Decisions Working Paper.

Quality Differentiation in Product-Service Bundles, (2015), J. Guajardo, Morris Cohen, Wharton School Operations, Information and Decisions Working Paper, under review.

The Value of Rapid Delivery in Online Retailing, (September 2014), Marshall Fisher, Santiago Gallino, Joseph Xu, Wharton School Operations and Information Management Working Paper.

Joint Stocking and Sourcing Policy for Single Depot, Single Base, Two-Echelon Environments with Repairables: The Role of Flexibility, (2014), I. Cohen and Morris Cohen Wharton School Operations, Information and Decisions Working Paper, under review.

Sourcing and Stocking Policies in a Two-echelon, Multiple Location, Repairable Parts Supply Chain, (2014), I. Cohen and Morris Cohen, Wharton School Operations, Information and Decisions Working Paper.

Assignment of SKUs to DCs to minimize split orders, (September 2012), Andres Catalan and Marshall Fisher, Working Paper.

Labor Planning, Execution, and Retail Store Performance, (September 2007), Marshall L. Fisher, Jayanth Krishnan and Serguei Netessine, Wharton School Operations and Information Management Working Paper.

On the Effects of Consumer Search and Firm Entry in a Multiproduct Competitive Market, (2007), Gerard Cachon, Christian Terwiesch,Yi Xu, (forthcoming) Marketing Science.

In Search of the Bullwhip Effect, (2007), Gerard Cachon, Taylor Randall, Glenn Schmidt, (forthcoming) M&SOM.

What Can be Learned from Classical Inventory Models: a Cross-industry Empirical Investigation, (2007), S. Roumiantsev, Serguei Netessine, (forthcoming) M&SOM, Special Issue on Empirical Science.

Simple Models of Discrete Choice and Their Performance in Bandit Experiments, (2007), Noah Gans, G. Knox, Rachael Croson, (to appear) M&SOM.

Operations Risk Management: Overview of Paul Kleindorfers Contributions, (2007), Morris Cohen, Howard Kunreuther, (forthcoming) POMS Journal.

How to (and How Not to) Estimate the Salvage Value in the Newsvendor Model, (2007), Gerard Cachon, Grhan Kk, M&SOM, 9(3): 276-290.

Implementing New Practices: An Empirical Study of Organizational Learning in Hospital Intensive Care Units, (June 2007), Anita L. Tucker, Management Science, 53 (6).

Reliability or Inventory? Contracting Strategies for After-Sales Product Support, (2007), Sang-Hyun Kim, Morris Cohen, Serguei Netessine, OPIM Department, The Wharton School.

Retail Store Execution: An Empirical Study, (January 2007), Marshall Fisher, Jayanth Krishnan, Serguei Netessine, (pending) Management Science, OPIM Working Paper, The Wharton School.

Competing Retailers and Inventory: an Empirical Investigation of U.S. Automobile Dealerships, (2007), Marcelo Olivares, Gerard Cachon, OPIM Working Paper, The Wharton School.

Purchasing, Pricing, and Quick Response in the Presence of Strategic Consumers, (2007), Gerard Cachon, Robert Swinney, Working Paper.

Improving Patient Outcomes: The Effects of Staff Participation and Collaboration in Healthcare Delivery, (2007), Ingrid M. Nembhard, Anita L. Tucker, Jeffrey D. Horbar, Joseph H. Carpenter, (under revision).

Drivers of Finished Goods Inventory Performance in the U.S. Automobile Industry, (2006), Gerard Cachon, Marcelo Olivares, OPIM Working Paper, The Wharton School.

Should Inventory Policy be Lean or Responsive? Evidence for U.S. Public Companies., (2006), S. Roumiantsev, Serguei Netessine, (under revision).

The Impact of New Product Introduction Upon Assembly Productivity in the North American Automotive Industry, (2006), M. Goyal, Serguei Netessine, M. Reindorp, Working Paper.

Operational Failures and Interruptions in Hospital Nursing, (2006), Anita L. Tucker, S.J. Spear, Health Services Research, 41 (3).

Capacity Investment by Competitive Startups, (2005), Robert Swinney, Gerard Cachon, Serguei Netessine, Working Paper.

Reports

Cases

New Thinking at New Balance, (2013), Marshall Fisher and Edwin Keh.

Yihaodian, (2010), Marshall Fisher.

Luen Thai B: Coping with Rising Wages, (2010), Marshall Fisher, Wharton Case Study.

Luen Thai A: Strategy for a Post Quota World, (2007), Marshall Fisher, Wharton Case Study.

Supply Chain Management at World Co. Ltd., (2001), Raman, Ananth, Anna McClelland and Marshall Fisher, Harvard Business School Case #: 601072-PDF-ENG

Wawa Store Execution, (2004), Marshall Fisher and Jayanth Krishnan.

National Bicycle Industrial Company, (1993), Marshall Fisher

Books

The New Science of Retailing: How Analytics are Transforming Supply Chains and Improving Performance, (2010), Marshall Fisher and Ananth Raman, Harvard Business School Press.