Internet and Supply Chains – MIS3537 Spring 2014

Supply Chains – at Internet Speed

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Q&A : Crocs case

1.  What percentage of safety stock would manufacturers in the footwear industry typically produce when meeting their fall orders (“pre-books”)?

2. How many pairs of their first flip-flop sandal model did Crocs produce in 2006?

3. What was the name of the Canadian manufacturer whose shoes Crocs was reselling as of 2004, which was subsequently bought out?

Crocs case

MIS 3537 Internet & Supply Chains

Spring 2014

Due Date: Jan 30, 2014

Refer to the case “Crocs: Revolutionizing an Industry’s Supply Chain Model for Competitive Advantage” from the Harvard Business Publishing website

 

Answer the following questions briefly:

1.  What are Croc’s core competencies?

2.  How should they exploit these competencies in the future? Consider the following alternatives and comment how each alternative matches / does not match with Crocs core competencies.

  • Further vertical acquisition into materials
  • Growth by acquisitions
  • Growth by product expansion

3.  What are the drawbacks of having too little or too much inventory?

4.  Is Crocs a high margin or a low margin company (compared to competitors)? How does a company’s margin impact its inventory decisions?  In other words, should a high margin company carry more or less inventory?

 

One group will present this case in the class, and another group will post the correct answers to these case questions on the blog after the class discussion. Rest of the groups are required to submit a printout of their answers to the instructor at the beginning of the class. Also, be prepared to discuss the case in the class.

Here are some tips for writing the case answers:

1. Answers should be brief and to the point (10 lines max)

2. Answers should be substantiated by proper reasoning from the case or other sources.

3. Avoid general statements such as “make customers happy”, “increase profits” etc without proper explanations

Q&A: Supply Chain Terms

Explain each of the following terms (each student may not attempt more than 3-4 terms to ensure broad participation)

1. Cycle Time
2. Process & Capacity Planning
3. Sourcing
4. Contract manufacturing
5. Inventory Policies
6. Vendor Managed Inventory
7. Distribution Network
8. Transportation
9. Lead Time
10. Lot Sizing
11. Incentive Alignment
12. Revenue Management
13. Demand Forecasting
14. Customization
15. Push/Pull Supply Chains
16. “Last mile problem” in supply chains

Q&A: week 1

Multiple Choice Answers (Choose one correct answer)

The management of an effective supply chain requires the coordination of a wide range of activities which include:

a. inbound logistics (e.g. purchasing and material releasing, inbound transportation, receiving, materials handling).
b. operations (e.g. inventory control and management, demand and supply planning, production planning).
c. outbound logistics (e.g. warehousing and distribution, outbound transportation).
d. Only a and c
e. all of the above.