The PC Solution (PCS), a Texas-based retail computer store, is faced with fierce
ID: 427547 • Letter: T
Question
The PC Solution (PCS), a Texas-based retail computer store, is faced with fierce competition in terms of both price and service. PCS is particularly concemed about the number of stockouts occurring on a popular type computer. Stockouts are very costly because when PCS cannot supply this particular computer, the customer promptly buys it from a competing store and PCS loses the sale. There is usually no opportunity to backorder the computer because the customer does not want to wait. PCS may also lose future business from that customer as well. PCS measures the effects of stockouts in terms of service level, or the percentage of total demand that can be satisfied from inventory PCS sells an average of 6 computers a day. However the sales can vary on any given day From the previous 100 sales' days, the frequency distribution for the number of units sold is Units 0 Davs1 16 The manufacturer of this computer is located in Washington state. Although it takes an average of 4 days for PCS to receive an order from the manufacturer, the time it takes to receive an order is also subject to uncertainty. The number of days to receive an order (sometimes referred to as lead time) can be summarized by the following frequency distribution based on thelast 50 orders Lead Time (days) Frequency of orders 10 30 10 PCS is faced with two decisions to make: (1) howmany computers to request with each order - the order quantity, and (2) when to place the order - the reorder point. The reorder point is that stock level that would trigger a new orderExplanation / Answer
Answer :-
Supply Chain Management at The Moscow McDonald's
Around the world, McDonald's operates more than 11,000 restaurants in 51 countries, 4,000
outside the United States. One of the most unique is the 700-seat McDonald's in Moscow.
McDonald's insists that a Big Mac must taste the same in Moscow as it does in New York,
Paris, or Sydney, yet all food products used to supply its restaurant in Russia must be secured
locally. McDonald's prepared for this challenge by planning the supply chain for the Moscow
restaurant six years in advance, when McDonald's experts began to work with Russians to
upgrade their production standards to supply the desired quality of meat, wheat, potatoes,
milk, and other necessary basic ingredients.
Supplier location is an important part of the supply chain at McDonald's, and past experience
has shown that what works best is to combine a number of independently owned foodprocessing plants dedicated solely to supplying McDonald's restaurants. This type of
centralized system, called a food town, reduces both transportation and material handling
costs. A $60 million food town was established in Russia that combines a bakery, meat plant,
chicken plant, lettuce plant, fish plant, and distribution center. Each of these processing
facilities is independently managed, but all share cooling and freezing facilities with the
distribution center. Locating dedicated processing facilities together is the only way
McDonald's could ensure the standards of quality and customer service required in its
Moscow restaurant. The system also reduces capital setup costs, inventory and material
handling costs, and distribution costs.
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