UGBA 10 Lecture Notes - Lecture 5: Continual Improvement Process, Costco, Mass Customization

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 10
• Professor: John Briginshaw

Document Summary

Lecture 5: managing supply chains part 1: design and performance: introduction. Amazon has 96 fulfillment centers and 117,000 employees. On its busiest day = 26. 5 million items ordered. 1 delivery speed: strategic location of distribution centers, 1300 robots to help, more items held in stock, and direct shipments from manufacturers site. 2 variety: access to tens of millions of products. 3 customization: ability to provide specific, unique orders for each customer: amazon web page allows you to bundle many different items on a single order. Supporting these four competitive priorities requires amazon to design a supply chain that is agile and able to produce unique customer orders on a timely basis. Increased competition and changes in consumer behavior are forcing companies to develop new products at a faster pace than ever before. The need to replace products every few years to keep up with demand forces companies to streamline their supply networks.