Technology and information management
kylecs14
formatexample3.docxShaer Munir
1/23/18
TIM 125
HW #2
TIM 125/225, MOT II: Homework 2
Supply Chain Strategy, Performance, and Drivers; Demand Forecasting
TIM-125/225 Course website: https://tim125-winter18-01.courses.soe.ucsc.edu/home
Planning: Create a time-schedule for doing the readings and for working on the problems and project. Submit this schedule with your solutions. Also, track how well you follow your schedule, and make notes regarding obstacles and problems to being “on track”. You should do a first pass on each problem before Tuesday’s class.
Schedule
|
Problem |
Date |
Time spent (hrs.) |
|
1 |
1/23 |
1 |
|
2 |
1/23 |
1 |
|
3 |
1/23 |
1 |
|
4 |
N/A |
N/A |
Reading:
|
SOURCE |
ASSIGNMENT |
|
TIM-125/225 course webpage: Handouts |
“Apple's Supply-Chain Secret? Hoard Lasers" |
|
C&M, SCM, 4th edition |
Chapters 2, 3, 7 (Demand Forecasting); Chapter 16.1, 16.2 (Information) |
Problems (due Thursday, 25 January, 2018):
You need to use the structured problem-solving process in all your work.
Amazon.com (Note: Parts of this problem might have been done in HW#1; include them in your solution)
1. Define
a. In this problem, we are gonna must do the following:
i. Using appropriate diagrams (stage representation, etc.) briefly explain how Amazon’s supply chain works?
ii. How would you characterize the competitive strategy of Amazon.com? What are the key customer needs that Amazon aims to fill? Where would you place the demand faced by Amazon on the implied demand uncertainty spectrum? Why?
iii. What level of responsiveness would be most appropriate for Amazon’s supply chain? What should this supply chain be able to do particularly well? (Visit the amazon web-site and perform “experiments” when solving this problem.)
iv. How can Amazon expand the scope of strategic fit across the entire supply chain?
2. Plan
a. For this problem, I will have to read and understand the main topics in Chapter 1 about Amazon.
3. Execute
a. To approach this problem, we first understand what amazon does and their supply chain. Amazon is a company that is most notably known for having many suppliers in from which they stock their warehouses. The customer can then go onto their website and search for a item and then place an order for that item. After the customer places an order, Amazon ships the item directly to the customer using mailing delivery services which can vary from which shipping method they chose or if they have Amazon prime which is two day or same day delivery. Amazon acts as the retailer and distributor, because it sells directly from the suppliers to the customers
b. Amazon’s supply chain works like the following diagram shows
Customers
Amazon
Suppliers
c. Amazon’s competitive strategy is to give the customer a wide variety of products at a low cost and fast delivery. It aims to fulfill the customer needs of having a wide variety of objects all in the same website for a relatively low price available to purchase from the comfort of your home, office, or anywhere with access to internet with very fast and accurate delivery schedule. I would place amazon in the somewhat efficient side of the implied demand uncertainty spectrum, because while it does aim to provide high technology products, it is moving towards providing basic home needs, like detergent and paper towels.
d. Amazon’s supply chain should be highly responsive for its supply chain strategy to align with their competitive strategy because they are trying to compete with retail stores in which a customer can instantly get their product at the moment of purchase, versus online shopping where the customer has to wait for his product to arrive. Amazon has been investing in technologies that allow for faster shipping to customers to fight this problem. They have recently invested in drone delivery and their prime delivery service has been getting great reviews with same day delivery and 2-day guarantee delivery. The supply chain should be very fast at transmitting information from Amazon to suppliers and delivering services to get the products to their customers in a timely manner.
e. It is currently working on it by introducing thinks such as Amazon Pantry and Dash buttons which aim to provide home essentials such as detergent, paper towels, tooth paste energy drinks and more. This way they’ll be providing for a more stable market and be able to work more closely on reaching economies of scale instead of just responsiveness and fast delivery.
4. Check your work
a. To the best of my knowledge I have checked my work and all my work is correct and accurate.
5. Learn and generalize
a. After completing this problem, I more accurately understand Amazon’s supply chain and how it is run inside the company.
Toyota: (can be done in collaboration with your project team; also for discussion in class on Tuesday 01/24/2017):
A. Answer the same questions posed above, in 1 A-D (above), for Toyota.
B. How can the full set of six drivers be used to create strategic fit with Toyota’s competitive strategy?
1. Define
a. In this problem, we are going to have to do the following:
b. Using appropriate diagrams (stage representation, etc.) briefly explain how Amazon’s supply chain works?
c. How would you characterize the competitive strategy of Amazon.com? What are the key customer needs that Amazon aims to fill? Where would you place the demand faced by Amazon on the implied demand uncertainty spectrum? Why?
d. What level of responsiveness would be most appropriate for Amazon’s supply chain? What should this supply chain be able to do particularly well? (Visit the amazon web-site and perform “experiments” when solving this problem.)
e. How can Amazon expand the scope of strategic fit across the entire supply chain?
2. Plan
a. For this problem, I will have to read and understand the main topics in Chapter 1 about Amazon.
3. Execute
a. To approach this problem, we first understand what Toyota does and their supply chain. Toyota is a company that is most notably known for having one of the most reliable and efficient cars on the market being sold worldwide. They have suppliers that supply’s a lot of their parts to make their car. They then send the parts to a Toyota manufacturer and after the car is manufactured they send the cars to a Toyota distributor where then it is sent to a dealership where finally the customer can then purchase a vehicle.
b.
c. Toyota’s competitive strategy is based on highly reliable vehicles that are developed through methods with lean manufacturing. Using thoroughly tested vehicles to the market. I would place Toyota in the somewhat responsive side of the implied demand uncertainty spectrum because they must keep up with the new technologies. For example, coming up in a few years, vehicles are going to be self-driving and new trends such as electric vehicles are happening. Toyota needs to keep up to date with these trends.
d. Toyota’s supply chain should be moderately responsive because they have more technologies to develop and incorporate in their new models. They should be particularly well in being responsive and adapting to new trends in the market
4. Check your work
a. To the best of my knowledge I have checked my work and all my work is correct and accurate.
5. Learn and Generalize
a. After completing this problem, I more accurately understand Toyota supply chain and how it is run inside the company.
A. Extract five (5) key lessons learned from this article, with respect to Apple’s SCM strategy.
B. Use these lessons to discuss how Apple achieves strategic fit.
1. Define
a. In this problem, we must read “Apple's Supply-Chain Secret? Hoard Lasers" article and then Extract five 5 key lessons learned from this article, with respect to Apple’s SCM strategy. We must then use these lessons to discuss how apple achieves strategic fit
2. Plan
a. For this problem, I must to read “Apple's Supply-Chain Secret? Hoard Lasers" article to answer the questions listed above.
3. Execute
a. Apple’s supply chain consists is most notably known for having one of the most reliable and efficient computers on the market being sold worldwide. They have suppliers that supply’s a lot of their parts to make their laptops. They then send the parts to a Apple manufacturer and after the laptop is manufactured they send the laptops to a Apple distributor where then it is sent to a Apple stores and other retail stores where finally the customer can then purchase a laptop or other Apple products like phones or music devices (mp3).
b. Apple built a closed ecosystem due to the number of computers it can process. It is interesting to suppliers to collaborate with apple because they know they Apple’s sales volumes are huge, but because of that Apple gets deals with suppliers only if it is beneficial to the company, so Apple is in a position in which they can exert a lot of power to their suppliers.
c. Apple knows its production volume and have a good forecast of future sales they can afford to buy all a supplier’s products and acquire special contracts leaving the competition waiting for their turn to be able to buy the products.
d. Apple’s product strategy is a differentiated strategy focused on providing high quality products in hardware as well as in software. Their supply chain strategy is to provide the customers with exclusive products that are made with high quality materials and always ready in stock. Because the target market is the customer who is looking for a premium quality product, the product needs to be aesthetic, reliable and efficient.
e. To figure out how we should design our supply chain strategy we need to look at the size of our company and product in relation to money and in relation to current share of the market. We need to make a projection of how big we expect the product to become. This way we can look at our competitor’s power over our company. E.g. Apple used to buy all the air freight for the busy holidays ahead of time to fulfill their demand but also disabling their competitors from shipping through air.
f. Apple achieves strategic fit by knowing who their customers are. Understanding they serve a premium market means they need to offer services to them and have product ready always. Because they are designing a premium product they want to have exclusivity so they exhaust the suppliers for competitors not to be able to have the same tools Apple has. This was seen twice in this reading with Apple buying all the laser machines to make the holes on their laptops and with buying all the air freight well in advance preventing their competitors to ship their products in time for the season. Apple understands its competitive strategy, their target market and their weight compared to their competitors and they use all this information very well when they plan their supply chain strategy.
4. Check your work
a. To the best of my knowledge I have checked my work and all my work is correct and accurate.
5. Learn and generalize
a. After completing this problem, I more accurately understand Apples supply chain and how it is run inside the company.
Demand Forecasting for Tahoe Salt: Use Excel to work through the static forecasting for the Tahoe Salt problem (4th Edition, Chapter 7). Your results should match the given solution.
1. Define
a.
2. Plan
a.
3. Execute
a.
4. Check your work
a.
5. Learn and generalize
a.
