What steps did P&G take to reduce the impact of the bullwhip effect In what other ways, according to you, can P&G reduce the bullwhip effect across its supply chain
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Operations Management
Case Studies
case study (20 Marks)
In August 2012, Amazon.com, the world's
biggest online retailer, announced that it would introduce same day delivery of
its orders as a service option to its customers and make next day delivery
standard service. This move came in response to the regulatory changes in some
states of the US that required consumers to pay sales tax, which in turn would
strip it off its price advantage. In order to stay ahead of the competition,
Amazon decided to cut its shipping time. In 2005, the company had introduced
free two day shipping and discounted one day shipping rates in the US on
eligible purchases for a flat annual fee under a service known as‘ Amazon
Prime'. This case discusses Amazon.com's business model, supply chain, and its
order delivery processes. In 2005, Amazon.com introduced a premium membership
scheme called ‘Amazon Prime'. It was a free two day
shipping and discounted one day shipping
rates service offered to the members in the US on eligible purchases for a flat
annual fee of $79. Over the years, the service was extended to other countries
like Japan, the UK, Germany, France, and Canada. In 2009, Amazon introduced
same day delivery in 10 big cities in the US, which were close to Amazon
warehouses. However, in August 2012, Amazon.com introduced same day delivery a an
option and made next day delivery a standard service to all its customers. In
2013, Amazon.com was a Fortune 500 company and a global leader in ecommerce. It
had a wide array of products, international sites, and a world wide network of
fulfillment centers and warehouses and customer service centers. It had
developed a customer base of around 30 million people. The company was a
retailing site that followed a sales revenue model and made money by taking a
small percentage of the sale price of each item sold through its website. It
also allowed sellers to advertise their products by paying a fee... However, analysts
were skeptical about the success of the model due to the impracticality of the
model and logistical hurdles that the company could face. Apart from these
problems, the delivery model also faced competition from other big and small
players.
Answer
the following question.
Q1.
Discuss the issues and challenges in the logistics and supply chain management
of retail and ecommerce businesses.
Q2.
Explain the concept of ecommerce and its impact on traditional retail.
case study (20 Marks)
In 1953, the Government of India, under
the Air Corporations Act, nationalized and merged the eight private airlines
that existed then and created two State run airlines out of them. One was Air
India, for serving international travelers to and from India, and the other was
Indian Airlines, dedicated to serving domestic passengers. For almost 40 years,
these two carriers enjoyed a monopolistic position in their respective
passenger segments. They were protected from competition within India by the
Air Corporations Act which did not permit any other airline to provide
scheduled services to and from or within India. Three distinct phases can be identified
in the recent industry trends and developments. . The first phase during
20032007can be characterized as one of significant growth in demand and
capacity (Figure 1). India’s GDP had grown at the rate of about 6% in 20002004 but
by around9% during 20052010.This economic growth had a significant impact on
commercial aviation in India. It boosted business and leisure travel (both
domestic and international). India was becoming a major origin and destination
for international travel. The second phase started in 2007, when the industry
witnessed a wave of consolidations, primarily to stem the tide of red ink. Jet Airways
too saw its market share and profits decline and stock price plummet by 40%
since 2005. Kapil Kaul of the Center for Asia Pacific Aviation (1), said, “But
the aggressive expansion of the LCC segment comes at a cost to the whole
sector. India’s airlines are expected to post a combined loss of approximately
USD500 million in the current financial year ending 31Mar07.”During the third
phase, in 2008, there was a steep fall in air travel due to the slowdown in the
Indian economy, the H1N1 flu scare, and the terrorist attacks in Mumbai in
November 2008. There was excess capacity all around and the airlines responded
by developing plans to lay off employees and by offering deeply discounted
fares to stimulate demand. Rival airlines Jet Airways and Kingfisher formed a
strategic alliance for code sharing and cutting costs.
Answer
the following question.
Q1.
Discuss the reasons for national airlines losses and debate capacity
utilization/allocation and pricing.
Q2.
Give your views on the case.
case study (20 Marks)
G V Muralidhara (GVM), Faculty member
of IBS , a wellknown educational group in Hyderabad, India, was involved in teaching
the MBA and BBA courses. While talking to another faculty member, G Vijayudu
(Vijay), GVM remarked on the important roleattitude played in the placement of
students in companies. While GVM felt that the students were reasonably good in
communication, he wondered whether they possessed the positive attitude that
was so critical during selection by companies. He felt that students who lacked
a positive attitude would suffer in terms of recruitment, team building skills,
and leadership qualities. With a view to improving the students’ communication
skills and attitude, GVM and Vijay scheduled and asked the students to give a presentation
on the importance of attitude. This exercise was meant to create awareness on
the subject and develop a good attitude among students. The BBA V semester
section ‘F’ consisted of 34 students (25 male and 9 female). As students were
told that this would be part of their internal assessment, they prepared very
well. Meanwhile, GVM told Vijay to go in for peer grading instead of traditional
teacher grading. Vijay argued against peer grading saying students would give
grading in arbitrary manner or would be biased toward their friends and might
show favoritism. GVM, however, disagreed. He described the benefits of peer grading.
He said that a study by Philip M. Sadler and Eddie Good had shown that when
student grading was used responsibly, it could be highly accurate and reliable
and help save teachers’ time. In their study, Sadler and Good had found that
self grading appeared to further student understanding of the subject matter
being taught. Finally, GVM and Vijay decided to adopt peer grading. The faculty
members made the students responsible for grading each other. The collected
grading data was given to Muthukumar, analyst, for analysis. This enabled us to
understand and analyze the gathered data to identify the highest graded student
and compare each student's grading with the overall class’s grading.
Answer
the following question.
Q1.
Discuss the advantages of grading’s by peers.
Q2.
Why the positive attitude is so critical during selection by companies?
Explain.
case study (20 Marks)
Procter & Gamble (P&G), the
world's leading producer of household products, markets over 300 brands to 5
billion people around the world. P&G's products fall under three broad
categories, namely, beauty care; health, baby, and family care; and household
care. In the early 1990s P&G faced a problem of extreme demand variations
for one of its bestselling brands Pampers diapers. The logistics executives at
P&G examined the order rates for Pampers across the supply chain. Though
the purchase rate remained more or less steady at the consumer end, the
logistics executives found that the variation of orders increased from the
retailer level to the distributor level up the supply chain. Increase in
production due to the uncertainty in demand is the concept of the bullwhip
effect. The reasons that led P&G to shelve its old supply chain model were
explored and the supply chain efficiencies were revamped. Their after the
company took various initiatives to increase accuracy of demand forecasts.
P&G also provided up to date information to suppliers so that they could
plan their production and deliver materials on a just in time basis.
Answer
the following question.
Q1.
What steps did P&G take to reduce the impact of the bullwhip effect? In
what other ways, according to you, can P&G reduce the bullwhip effect
across its supply chain?
Q2.
Coordination between the various stages of the supply chain increases overall
profits and moderates the bullwhip effect. What are the basic obstacles in
supply chain coordination and how can P&G ensure this coordination?
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
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