7-11 Japan Case

958 WordsApr 8, 20134 Pages
ISOM 319-E Operations Management Case: Seven-Eleven Japan February 7, 2013 Part A Some different ways that a convenience store chain can be responsive are they can intergraded information systems, additional capacity which are manufacturing, distribution centers and retail store, they also can increase safety inventory, increased number of deliveries, and increased product variety and availability. Part B Some challenges and risks with micro-matching supply and demand using rapid replenishment are the risk for local capacity which is capacity is decentralized, leading to poorer utilization. The risk for local inventory is obsolete inventory, and it needs the extra space. The risk for rapid replenishment is increasing the cost…show more content…
There are 10,615 stores over Japan and 5,798 in United States. The small size of land and the great number of stores in Japan means that the density of the stores is very high. Therefore, customers can access to stores easily. On the other hand, the low density of stores in United State may cause inconvenience to customers. Part F Compared the geographic dispersion of Seven-Eleven stores between Japan and the U.S. the stores tend to be dense in Japan. Using the DCs distribution system can maximize to fill full every delivery truck, and decrease the delivery frequency to each store. Thus, it can reduce the delivery cost. However, in the U.S. the stores are not as clustered as in Japan. It is hard to make sure every outbound transportation truck full with delivery items. Using an outsourcing transportation can ensure the delivery trucks full, cut down the transportation cost, and urge the shipping fast. Part G Based on the different market demands, the fresh food items are classic and simple in the U.S. stores. Moreover, the fresh food sale is lower than Seven-Eleven Japan. The U.S. stores need the fresh food item to deliver daily or every two days. Therefore, using the outsourcing food distributors can reduce the production and transportation cost. However, the Japanese customers request the stores to provide the variable fresh foods. More than 50 percent of food items change in the course of a

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