Answers of Supply Chain Management

What is the difference in implied uncertainty faced by a convenience store chain such as 7-Eleven, a
supermarket chain, and a discount retailer such as Costco?
When customers go to a convenience store chain such as 7-Eleven, they go there for the
convenience of a nearby store and are not necessarily looking for the lowest price. Implied
demand uncertainty would be high as customers are looking for a variety of products and
convenience versus cost and demand levels are hard to predict. A supermarket chain focuses on
cost and quality, with some specialty chains adding flexibility by carrying a broader range of
products that may be targeted towards customers interested in organic products or ethnic cuisine.
Implied demand uncertainty for a supermarket chain tends to be low; shoppers are typically
repeat customers and have a constant demand level. The supermarket supply chain must be
responsive by receiving produce quickly to ensure freshness and have a high service level.
Supermarket supply chains tend to be well established and can improve strategic fit by
emphasizing speed to maintain freshness, hence perceived quality. Low price is very important
to customers of discount retailers such as Costco. This customer is willing to tolerate less variety
and even purchase very large package sizes as long as the price is low. Customer demand can be
more predictable and supply side needs are large and fairly stable.
Question:
Consider the purchase of a can of soda at a convenience store. Describe the various stages in the supply chain
and the different flows involved.
Why should a firm such as Dell take into account total supply chain profitability when making decisions?
Supply Chain Management.

When a product is purchased or sold it reaches form the producer to the last consumer passing through various
stages of supply. These stages of the supply involve various kinds of processes of the materials, information,
technologies, and funds. Management of these stages is addressed as supply chain management.
Answer and Explanation:

The purchase of the can of soda includes flowing stages of the supply chain:
 Supplier of the raw material for the soda.

 Producer of the soda.
 Distributer of the soda.
 Retail store of the soda.
 The consumer of the soda
The following flows are involved in the purchase of the can of soda:
 The flow of materials.
 The flow of information.
 The flow of funds.
When a product is sold, the profit generated by the sale of the product is distributed to all stages of the supply
chain. This is described as the supply chain profitability. When big business organizations make a decision
related to the business, they must take the supply chain profitability into consideration. If the profit made by the
sale of the product of a company is distributed appropriately, it will help the business organization to grow and
run successfully in the long run. For example, if the suppliers, distributors, retailers, consumers are getting
profit/benefits and are satisfied with the business activities of a particular company, they (suppliers, distributors,
and retailers) will also improve their business performance and contribute to the expansion of the company.
That's a company should pay attention to the supply chain profitability while making the decisions
Consider the purchase of a can of soda at a convenience store. Describe the various stages in the supply
chain and the different flows involved.
When a customer purchases a can of soda at a convenience store, his purchase represents the end of a
supply chain’s delivery of an item and the beginning of information regarding his purchase flowing in the
opposite direction. The supply chain stages include customers, retailers, wholesalers/distributors,
manufacturers, and component/raw material suppliers. A customer’s purchase moves product towards
the customer and dollars and information towards the retailer. The retailer places an order from the…
show more content…
Finally, the procurement cycle connects the manufacturer and the supplier. The manufacturer requires
raw material inputs of paper, ink, etc., to begin the assembly process for another batch of Supply Chain
Management. The push/pull boundary exists where demand switches from reactive (pull) to speculative
(push) production. For most bookstore supply chains the push/pull boundary is between the customer
order cycle and the replenishment cycle. The customer order pulls the book from the book store shelf but
the initial production of the book was triggered by a build order that moved materials along the supply
chain to the retail outlet.
The supply chain stages comprise customers, retailers, distributors, manufacturers, and raw
material suppliers.
Initially, the supplier provides the raw material to the manufacturer, by getting the order and
money is passed from the manufacturer to the supplier.
The dealer/distributor gives an order to the manufacturer who in turn makes the product and
delivers it in return for money.
The retailer orders it from the distributor and money is passed from the retailer to the distributor.
A customer purchasing a can of soda at a convenience store shows the end of the supply chain,
the money going to the retailer from the store.

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What is the difference in implied uncertainty faced by a convenience store chain such as 7-Eleven, a

supermarket chain, and a discount retailer such as Costco?

Supply Chain Management.

Answer and Explanation:

 Supplier of the raw material for the soda.

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