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Assignment Applicable for December 2017 Examination
Course:
Supply Chain Management
1. UrbanStairs, an online furniture
retailer is planning to set up distribution centres pan India. As an SCM
consultant, offer advice on how to design the distribution network to deliver
products to the customers in a timely manner. (10 Marks)
2. While designing a supply chain,
various strategic, tactical and operational level decisions need to be made.
Supply chains need to be designed in such a way that they can respond
immediately to any fluctuations that take place. Supply chain must be designed
in such a way that the performance and costs remain unaffected despite various
fluctuations. Elaborate on the strategic supply chain decisions a Retail Store
selling Electronics and Computer Accessories needs to take. (10 Marks)
3. Netherlands-headquartered furniture
retailer IKEA will invest 908 million ringgit ($212.10 million) to set up one
of its largest regional distribution and supply chain centres in Malaysia, the
Southeast Asian country said. The supply chain centre will manage an inventory
worth 6.6 billion ringgit annually, catering to IKEA's growth in the ASEAN
region, the Malaysian Investment Development Authority (MIDA) said in a
statement on Tuesday. The new 100,000 square metre warehouse will supply to 12
existing retail stores in the region. IKEA plans to grow its number of stores
in ASEAN to 20 by 2026. Malaysia is a significant market for IKEA, with retail
stores in the country being among IKEA's most visited globally. "The
establishment (of the warehouse) also adds momentum towards making Malaysia a
regional distribution hub and preferred logistics gateway to Asia as outlined
in the National Logistics and Trade Facilitation Masterplan and National
E-Commerce Strategic Roadmap," Minister of International Trade and
Industry Mustapa Mohamed said. Malaysia has been encouraging large local
conglomerates and multi-national companies to use the country as a gateway to
the region through various initiatives, including the principal hub scheme that
allows companies to centralise their global activities such as procurement and
distribution.
The web of companies that make up IKEA
has recently focused ownership of retail operations, which also include
shopping centres and food retail, on IKEA Group. Supply chain management and
design has transferred to brand owner and franchisor Inter IKEA. Source:
http://retail.economictimes.indiatimes.com/news/home-and-decor/furniture-and-decor/ikea-to-invest-212-mln-to-build-regional-supply-centre-in-malaysia-govt/60185153
a. What are some of the challenges faced
by IKEA in managing its global Supply Chain. (5 Marks)
b. How do you suggest IKEA can use
Information Technology to support its Supply Chain operations in Malaysia? (5
marks)
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