1. How could a grocery store use inventory to increase the
responsiveness of the company’s supply chain?
The logistical driver of inventory encompasses all raw materials, work in
process, and finished goods within a supply chain. A grocery store can be
more responsive in the eyes of its customers if it offers a broader variety
of SKUs and/or maintains a greater quantity of each SKU. A greater
quantity of each SKU is problematic for highly perishable items like
produce, meat, fish, etc. For these items, a grocery store supply chain
should be set up to permit frequent orders so that freshness is ensured and
a stockout situation won’t exist for a significant length of time. A grocery
store supply chain should use historical demand patterns for seasonal
items to relieve stress on all members and provide customers with product
during peak demand periods.
2. How could an auto manufacturer use transportation to increase the
