A. Supply Chain Strategy: I recommend the Keiretsu networks as the correct supply chain strategy for the power tool company. The three main strategies are the Keiretsu network, virtual company, vertical integration. All of them have their advantages and disadvantages.
In a Keiretsu network the manufacture will combine the best features of all three methods, it is part collaboration, using fewer suppliers and some vertical integration. An example of this style of Keiretsu network would be that the tool company can work closely with one supplier, such as a parts maker but not by buying out the company. Here the commitment to a long term business relationship promises continued mutual growth. They collaborate with each other and share…show more content… In comparison a department stores has much higher turn over.
Using Inventory Turnover to Calculate Average Days to Sell a Product. Once the inventory turn rate is calculated then calculating the number of days it takes for the power tool company to clear its inventory is 365 days divided by inventory turn rate of 5 times per year, take 365 ÷ 5. The answer 73 is the number of days it takes to go through its inventory. This method can also be used for benchmarking against companies in the same business. This will help compare the inventory turnover rates.
B. b. Perfect order measure/fill rate: This method measures the error-free rate of each step in the supply chain. Error occurs when the customer has an unsatisfactory experience with the power tool they purchased because of errors and delays in the supply chain. The complexities of an extended supply chain make the odds against fulfilling a perfect order challenging.
The number of defective pieces that are received by customers can be a measurement of perfect orders. An error code can be developed for faulty power tools. The following percentages can also be used:
Parts entry 99% correct
Delivered on time 89%
Shipped without damage 87%
All three can be added to calculate the 275/3 = 91%. Therefore, 91% would be the fill rate.
Fulfilling a perfect order depends on the journey through the supply chain, it is filled with