A useful tool in managing inventory is calculating an order point for each product. An order point is the lowest number of units that a product can reach before a replenishment is issued. Essentially, when inventory reaches this point, retailers know it is time to reorder the particular product. Determining the correct order point is vital to managing merchandise. If inventory goes too low, a retailer will likely run out of stock before the next order arrives if they do not calculate the order point accurately(chapter 12 slides).
Tesla need to find way to build more production plants in Europe and Asia fast so it can supply the local demand. Tesla continues to improve the manufactory process to reduce the hours required to build car by 40% in year 2013 (model S) in increase until production by 80% in Q1 2013 (Rothaermel 2013). The percent reduction can be decrease to 80% or 100% next few years if the improvement continues. The main factor to keep Tesla from increase EVs production is lithium-ion battery production. There are only few manufactories in the world make the lithium ion battery in the world (2013) and most of them locate in Asia so Tesla need to partner with them to product more lithium-ion battery.
For Zara, scarcity in fashion increases desirability, which comes to a conclusion where shoppers need to be fast in purchasing as the item may not be available the following week. Lower quantities also mean there are not much to be disposed when the season ends; Zara only discounts 18% of its stock in sales, which is half the industry average. This brilliant idea contributes in settling all the expenses catering the rent, electricity, machinery, maintenance and the salaries. The economy, the competition, and new opportunities might affect the company’s success. The manufacturing strongly relies on production in Northern Spain.
It states in Source 3: “Abolish the Penny” by William Safire, “They cost more in employee-hours—to wait for buyers to fish them out, then to count, pack up and take them to the bank —than it would cost to toss them out.” However, with every argument there is another side, meaning there is a group of people that believe we should keep the penny. “Pennies play an important part in our culture and our history. Abraham Lincoln has adorned the coin for 95 years. Getting rid of the coin would be getting rid of an item that pays homage to one of the greatest former leader of this country.” Stated in Source 4 “The penny should stay” by Grace Harter. If the penny was so popular like source 4 states, why does it state otherwise in source 3 “Abolish the Penny” by William Safire, “Two-thirds of them immediately drop out of circulation, into piggy banks or—as The Times’s John Tierney noted five years ago—behind chair cushions or at the back of sock drawers next to your old tin-foil ball.Quarters and dimes circulated; pennies disappear because they are literally more trouble than they are worth.” summarizing that all up, the majority of the time people just toss pennies to the side, they are useless and should be
Wal-Mart in America relied most on the Supplier information, but in Germany, Wal-Mart was not familiar with the Supply Chain and its Suppliers, which led to loss in its functioning as they could not efficiently leverage the supply chain benefits which was their strength while doing business in America.The key strategies of Wal-Mart while entering Germany were: 1. EveryDay Low Price (EDLP) 2. Inventory Control 3. Efficient Distribution Strategy (Efficient Supply Chain management) 4. Aggressive Bargaining with Suppliers- Overall Cost Leadership.
For Germans, it is a rarely treat. Once they come around which is up to four times in a year the stores are filled with people to a maximum making it no pleasure whatsoever. However, religion should not be the basis for laws and thus Sunday opening hours in Germany should be changed. Consequently, giving those people who want to open their business on a Sunday a chance to do so making it rather a free choice than an obligatory. Helping not only the ones who have confined time during the week but also those whose options
This new payment method has created a huge controversy worldwide because it is going against our actual and well established economy. The truth is that we are living in a time of change, but what we don’t know yet, is if this kind of currency will stay forever or it is just a new trend that will end sooner or later. For the same reason, it is very important for people to know and understand the advantages and disadvantages that Bitcoin and its competitors (e.g. Ethereum) have. This essay will argue in favor of adopting this alternative currency.
e) Capital requirements: - there must be a huge capital is required to a new firm whether for manufacturing equipment, research and development or advertising expenditure. This all will leads to hold back new entrants to the market. 2. Bargaining power of suppliers Powerful supplier group possess one or more several of the following characteristics. a) Supplier concentration: - if the industry is dominated by few suppliers, this provides little choice for the buyer.
The company only hires 200 artisans a year which this whole process slow down the production line which is not an issue for the company since it wants to maintain the brand philosophy of creating exclusivity and scarcity. ▪ Hermès is a fan of pursuing the “limited edition” strategy and limiting distribution of its products in the stores ▪ The introduction of “patience” as a very strong principle and element in its brand strategy. Clients cannot expect to walk into a store and walk out with a Birkin bag. They have to place an order and wait for months to get it. ▪ Hermès collaboration with ultra-luxury brands, such as John Lobb shoes, Puiforcat tableware & dinnerware and Saint Louis glassware, is consistent.
The third constraint is that since it is a competitive market and the times are bad, if Bob doesn't supply the lumber someone else will. And this will take away their customer as well as the rapport that Bob built with Stan till now. If I was Bob I would go forward with the order and execute it. But I would make sure that I clearly specify in the invoice that " This lumber is not suitable for use as a scaffold plank " as a warning so that my moral obligation is completed. This is also a chance for me to learn that there are many differences from the real world to that of the theoretical world that we study in books.