Q1 :A convenience store chain aempts to be responsive and provide customers with what
they need when they need is where they need it .What are some different ways, that a
convenience store supply chain can be responsive? What are some risks in each case.
A1:A convenience store supply chain can be responsive in two different ways.
1. A convenience store based its fundamental network expansion policy on a market–
concentration strategy. Entry into any new market was built around a cluster of stores supported
by their own distribution center.
The risk of this method is that this kind of supply chain would be highly depends on their
logistics system. This logistics system may be not professional enough to supply the rapid
replenishment. The distribution center built by the company would also cause confusion in the
local logistics industry and unnecessarily redundant.
2. It could open the majority of its new stores in areas with existing clusters of stores when there
were fewer small and medium-size retailers in a given area. Opening the third-party-owned
franchises make sure a convenience store supply chain.
The risk of this case is that &rstly increased communication with the third-party-owned
franchises and local retailers would lead to commercial secrets leaked out. Secondly, this system
would be highly rely on the accuracy of the information. If there is a serious problem in the
information system, the entire supply chain would be endured heavy losses. Finally, limited