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Cassia Report

In: Business and Management

Submitted By Lucky4647
Words 1125
Pages 5
Cassia

TEAM EIGHT

Team 8 El Capitan of Cassia

1

El Capitan of Cassia
Competitive Strategy
Supply Chain Strategy
Efficiency Responsiveness

-Customer is not brand loyal, therefore any stock outs will cause loss of market share. -If strategy is to protect market share, air freight costs and inventory carrying costs erode profits and need to be reviewed. -The better approach is to expect some stock outs with the demand velocity and plan to maintain your supply chain with a cost effective approach. -Other teams in our group had more market share than us, yet we won the competition due to higher profits. Responsiveness comes with a costs.

Spring 2013

Team 8 El Capitan of Cassia

2

El Capitan of Cassia
Responsiveness
High Encroacher

Competitive Strategy used by El Capitan of Cassia
Blended

Suggested Strategy

Low Sentinel Low High

Efficiency

- El Capitan of Cassia utilized a high level blended strategy which allowed us to be responsive while balancing inventory levels. - Recommend a little less responsiveness and more efficiency to decrease the costs and improve profits. - A more blended strategy should be used when the potential for outages occur, the costs of air freight are too high to recommend. Spring 2013 Team 8 El Capitan of Cassia 3

El Capitan of Cassia

Cost & Service Drivers

Stock out

36,158

99%

Product Availability

3,195,167

Total Demand

-Product availability means having the right amount of inventory to meet the demand. -The costs to have the product available and prevent a stock out, should be considered carefully. -If a decision is made to rush product by utilizing air freight, consider the true costs involved to get product in stock just one week earlier than utilizing two alterative carriers: APL-Con Premium and Alwaysgreen Freight. -Suggest a cycle service level of 97% instead of the...

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