Online from: 2011
Information: About this Collection
|Title:||Assess your business model strategy to sustain|
|Author(s):||Muhittin Hakan Demir (Professor in the Department of Logistics Management at Izmir University of Economics, Izmir, Turkey), Aysu Göçer (Instructor in the Department of Logistics Management at Izmir University of Economics, Izmir, Turkey)|
|Citation:||Muhittin Hakan Demir, Aysu Göçer, "Assess your business model strategy to sustain", Emerald Emerging Markets Case Studies Collection, (2011)|
|Keywords:||Eastern Europe, Inventory, Supply chain management|
|Article type:||Case study|
|DOI:||10.1108/20450621111131363 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
|Acknowledgements:||Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality.|
Title – Assess your business model strategy to sustain.
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.
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