ASTRON C12 Lecture Notes - Lecture 25: Inventory Turnover, Product Design, Playstation 3
Document Summary
Amazon web page allows you to bundle many different items on a single order: low cost operations: price is an order - winner for amazon. A lot of factors are pushing market and competitors towards improving its operations and (re)design their supply chains. Factors include: global competition, shorter product life cycle, new, low-cost distribution channels, more powerful well-informed customers, use of internet and e-business strategies. Investments moving fast from one country to another. Supply chain efficiency curve - helps understand trade-offs between cost and performance of supply chain designs. Managers need measures to assess the supply chain performance and determine future goals. Inventory turnover: an explanation of this metric is provided below in context with the retail sectors. Inventory often represents a large share of assets in the retail sector: sales, profitability and cash flow are directly related to how efficiently and effectively a retailer utilizes its inventory.
