Ques 1: A convenience store chain attempts to be responsive and provide customerswhat they need, when they need it, where they need it. What are some different waysthat a convenience store supply chain can be responsive? What are some risks in eachcase?Answer: One most important factor to consider would be the increasing amount ofconvenience stores places throughout. Rapid replenishment is something that could helpconvenience stores responsiveness. As responsiveness increases, the convenience store chainis exposed to greater uncertainty.
A convenience store chain can improve responsiveness byusing any of the following strategies, especially for fresh and fast foods:?Local capacity:
The convenience store chain can provide local cooking capacity atthe stores and assemble foods almost on demand. Inventory would be stored asraw material. This is seen at the U.S. fast food restaurant franchise Subway wheredinner and lunch sandwiches are assembled on demand. The main risk with thisapproach is that capacity is decentralized, leading to poorer utilization.?Local inventory: Another approach is to have all inventories available at the storeat all times. This allows for the centralization of cooking capacity. The main risk isobsolete inventory and the need for extra space.?Rapid replenishment: Another approach is to set up rapid replenishment andsupply the stores what they need and when they need it. This allows forcentralization of cooking capacity, low levels of inventory, but increases the costof replenishment and receiving.Ques 2: Seven-Eleven's supply chain strategy in Japan can be described as attemptingto micro-match supply and demand using rapid replenishment. What are some risksassociated its supply choice?Answer: The risks with this supply choice are:?High cost of transportation which includes gas, vehicle, staff?The risk of having obsolete inventory.?Lack of extra space