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Gateway Case Study

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Submitted By Shazadesu
Words 273
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Shaza Al-Washali

Lama Al-Dhefian

Bayan Al-Shareef

Level 7 (B)

1.Why did gateway have multiple production facilities in the United States?
Gateway strategy was to avoid any carrying cost of the finished-goods inventory at the retail store, the facilities will assemble the product then send it to the retail store upon the customer orders.

2.what factors did Gateway consider when deciding which plants to close?
The plant with the most difficulties in transporting the products and the plant with the most loss.
3.Why did Gateway choose not to carry any finished-product inventory at any retail store?
To avoid carrying cost and For the customer to get the right configurations and the desired PC therefor make sure the customer is satisfied with the finished product.
4.Should a firm with an investment in retail stores carry any finished-product inventory? What characterizes products that are best manufactured to order ?
It depends on the finished product and if the cost of manufacturing of it is high and the product life cycle overall some simple and easy to assemble product should be in the inventory.
If the product takes time and money to manufacture and assemble and transport it is best not to have a finished product inventory.
5.Is Dell Model in selling directly without retail store always less expensive than supply chain with retail stores?
Yes, The retail store will be costly so to some degree it is less expensive Model as it reduces the carrying cost.
6.What are supply chain implication of Gateway decision to offer fewer configuration?
Less profit and high manufacturing cost.

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