A second hand textbook store owner wants to increase sales to students by insert
ID: 1166674 • Letter: A
Question
A second hand textbook store owner wants to increase sales to students by inserting a new disk into texts for courses that require students use additional resources on the disk.This will enable students that purchase the used text to have access to the software license that is normally used up by the original text owner. The store owner has a cost for the disk but is unsure of how long it will take to insert the new disk since this process will be manual and labourious. He decides to conduct some time studies. The books are in boxes, 20 books per box. He observes the worker he has hired to record the times it takes him to replace a box of books. The owner records the time for 10 boxes of books. Since he realizes the worker will get fatigued as the day progresses he builds in a performance rating factor of .93. The worker will also need personal breaks such as going to the bathroom so the owner builds in an allowance factor of .02. T
Observations
Time (min)
1
10.23
2
10.00
3
9.88
4
9.97
5
10.15
6
10.30
7
10.24
8
11.00
9
11.25
10
10.88
c) As it turns out the bookstore owners idea of inserting new software disks into used textbooks is a hit. Sales have increased substantially and not just for courses that require additional software as a resource. The owner realizes that the growth in sales will have to addressed by an improved approach to his production processes. A higher rate of growth can lead to higher profits but the owner also knows that with inefficient productivity this can lead to a faster rate of losses too.Apply the SCOR model to this scenario to recommend how the bookstore owner should design the supply-chain of his operation.
Observations
Time (min)
1
10.23
2
10.00
3
9.88
4
9.97
5
10.15
6
10.30
7
10.24
8
11.00
9
11.25
10
10.88
c) As it turns out the bookstore owners idea of inserting new software disks into used textbooks is a hit. Sales have increased substantially and not just for courses that require additional software as a resource. The owner realizes that the growth in sales will have to addressed by an improved approach to his production processes. A higher rate of growth can lead to higher profits but the owner also knows that with inefficient productivity this can lead to a faster rate of losses too.Apply the SCOR model to this scenario to recommend how the bookstore owner should design the supply-chain of his operation.
Explanation / Answer
The supply chain operations reference model (SCOR) is a management tool used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company. The model describes the business processes required to satisfy a customer’s demands. It also helps to explain the processes along the entire supply chain and provides a basis for how to improve those processes.It has been described as the “most promising model for supply chain strategic decision making. The model integrates business concepts of process re-engineering, benchmarking, and measurement into its framework . This framework focuses on five areas of the supply chain: plan, source, make, deliver, and return. These areas repeat again and again along the supply chain.
According to the above provided condition in the question the bookstore owner should design the supply-chain of his operation in following way :
Plan: As the bookstore owner understands that his idea os inserting new software disks into used textbooks is a hit, he also need to be active about the same approach in future as well, he can manage it by either continuing what he is doing or he needs to come up with an idea just like this one. Therefore planning is very imortant and as long as he manages to work with consistency the sales will be consistent.
Source: Bookstore owner need to know the requirement of students as well and then dig into the source i.e., the demand of students like, what exactly is their requirement about and if it could be provide by the software disks etc. .
Make: Bookstore owner needs to make the software disks available and make sure that it is never compromised. As the availibility of software is very important for the growth of sales.
Deliver : It includes the eceiving orders from customers and invoicing them once product has been received and door step delivery of the product can be an added advantage.
Return : Bookstore owner must be prepared to handle the return of customers like, in case it is possible that due to some technical erroe the software disks does not work well or some other issues. Providing an extra care or service to customer is always beneficial.
The SCOR process can go into many levels of process detail in above case it can help bookstore owner analyze its supply chain. It can give them an idea of how advanced its supply chain is. The process also helps them to understand how the 5 steps repeat over and over again between them, and customers. Each step is a link in the supply chain that is critical in getting a product successfully along each level.
The SCOR model has proven to benefit companies that use it to identify supply chain problems. The model enables full leverage of capital investment, creation of a supply chain road map, alignment of business functions, and an average of two to six times return on investment.
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