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Case Study Questions

CHAPTER 1 HW Solutions

2 Why should a firm like Dell take into account total supply chain profitability when making decisions?
Their success rely on competitive advantage. If Dell was to view supply chain operations as a zero sum game, they would lose their competitive edge as their suppliers’ businesses struggled. Dell’s profit gained at the expense of their supply chain partners would be short lived. Just as a physical chain is only as strong as its weakest link, the supply chain can be successful only if all members cooperate and focus on a global optimum rather than many local optima.
3 What are some strategic planning and operational decisions that must be made by an apparel retailer like The Gap?
As The Gap plans supply chain strategy it must first consider the marketing function’s pricing plans in order to structure a supply chain consonant with these plans. Strategic considerations such as the capacity of each supplier and assembly operations, sourcing decisions......


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