Operations Management
This week you will have read Chapters 4 and 5 of the text. For the week's discussion, we shall examine the role of the distributor in the supply chain. Cost-cutting and efficiency initiatives often target the elimination of "non-value-added activities" (muda, or waste, in the terminology of Lean Management) and the cutting out of the "middleman." Please address the following questions:
What role does a distributor play in the supply chain?
Does the distributor add any real value (i.e. does he increase the supply chain surplus)?
Can the distributor stage be eliminated without detriment?
[Note that we are concerned with distribution as a supply chain function that may or may not be a distinct entity. For example, Wal-Mart today runs its own distribution centers. This doesn't mean they have eliminated the distributor--only that they have moved this function in-house. Make a distinction also between distribution and transportation. Clearly goods need to be transported from origin to destination--that is not what this question is about.]
This week you will have read Chapters 4 and 5 of the text. For the week's discussion, we shall examine the role of the distributor in the supply chain. Cost-cutting and efficiency initiatives often target the elimination of "non-value-added activities" (muda, or waste, in the terminology of Lean Management) and the cutting out of the "middleman." Please address the following questions:
What role does a distributor play in the supply chain?
Does the distributor add any real value (i.e. does he increase the supply chain surplus)?
Can the distributor stage be eliminated without detriment?
[Note that we are concerned with distribution as a supply chain function that may or may not be a distinct entity. For example, Wal-Mart today runs its own distribution centers. This doesn't mean they have eliminated the distributor--only that they have moved this function in-house. Make a distinction also between distribution and transportation. Clearly goods need to be transported from origin to destination--that is not what this question is about.]
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