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Assess your business model strategy to sustain

Muhittin Hakan Demir (Izmir University of Economics, Izmir, Turkey)
Aysu Göçer (Izmir University of Economics, Izmir, Turkey)

Publication date: 1 January 2011

Abstract

Subject area

This case study considers the supply chain redesign of a multinational company, with specific emphasis on production lot sizing, inventory policy and transportation decisions.

Study level/applicability

The material is intended for senior level students of business administration, logistics and similar departments. An intermediate knowledge of supply chain, purchasing and inventory concepts is required; therefore, the case is better suited for students who have taken one-semester courses on supply chain management and inventory management. This case can be used in graduate courses as part of discussions on physical distribution, supply chain design/redesign, risk pooling through process optimization.

Case overview

Within the global market, establishing the right business model where cost of operations is optimized has become key for competitiveness. This necessitates the simultaneous consideration and reevaluation of production, inventory and transportation interactivities within the integrated supply chain. We first discuss the business procurement model of a multinational company with emphasis on critical aspects of the current structure. An alternative model brought into consideration by the managers of the company considers consolidation of shipments through supply hubs and distribution to regional manufacturers. We present an analysis based on perspectives of company managers for and against this new business model. We finally provide numeric evidence on relevant costs of both models in order to enhance further discussion on redesign decisions.

Expected learning outcomes

The discussion regarding the case will provide a better understanding of key concepts of supply chain integration and coordination as well as the significance of the optimization of underlying processes.

Supplementary materials

Teaching notes.

Keywords

Citation

Hakan Demir, M. and Göçer, A. (2011), "Assess your business model strategy to sustain", , Vol. 1 No. 1. https://doi.org/10.1108/20450621111131363

Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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