Lecture 3

Question 1

Lowest-cost needs

Answer 1

-Sufficient, stable demand
-Few disturbances

Question 2

Lowest-cost organizational characteristics

Answer 2

-Cheap personnel (repetitive jobs)
-Little staff
-Large scale processes

Question 3

Differentation needs

Answer 3

-Complex demand (mix of price, choice, quality)
-Changing business (technology/fashion/”hypes”)

Question 4

Differentation organizational characteristics

Answer 4

-Complex dynamic structures / networks
-Much staff
-Entrepreneurship in business units
-Flexible processes

Question 5

SKU

Answer 5

Stock keeping unit

Question 6

Racetrack

Answer 6

loop with a major aisle that has access to departments entrances

Question 7

Free-form

Answer 7

Fixtures and aisles arranged symmetrically

Question 8

Grid

Answer 8

Supermarkets

Question 9

Cross-docking

Answer 9

• Moving products directly from inbound vehicle to outbound vehicle, without decoupled storage in between
• You exactly order the products for which destination is already known

Question 10

Advantages cross-docking

Answer 10

• Inventory reduction, space reduction (compared with warehousing)
• Reduction of administrative work
• Handling reduction (in DC, compared with warehousing)
• Can reduce transport (compared with direct)
• Lower cost (for the retailer)
• Sometimes shorter lead times (especially for perishable goods)

Question 11

Marketing strategy basic decisions

Answer 11

• Store image (quality, pricing, comfort)
• Assortment (width and depth)
• Product display (packaging, space, location)
• Suppliers (number and type)
• A-brands, private labels
• Price levels, in relation to margins