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Fast Fit Case Study

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General Question

1. Mark the main flows of goods and money in the diagram (above) and employ a key or table of descriptive elements to explain your answer (i.e., more than just two words). [Note: you can complete the drawing in PowerPoint and then copy/paste if that is easier for you.]

Key Symbol | Explanation | Blue: Flow of Goods | HQ sends orders to the supplier notifying them of the quantity of goods that needs to be sent to the warehouse. When the supplier receives these orders, they then send the goods to the warehouse. From there, the warehouse records and sends the appropriate amount of goods to the store. And from the store, the goods are sold to the customer. | Red: Flow of Money | From the store, the customer will buy …show more content…

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4. Assume HQ is responsible for replenishing inventory at the stores. a) What information is needed and how is it used to decide what to send to each store? b) Where does the information come from? c) Why didn’t we have each store decide what to order from the warehouse? d. Information Decision Information | Drives Which Decision | Individual store inventories | HQ sends certain products that need to be restocked to specific individual stores that need them | Store demographics | HQ could send more of a specific product if it is found that a more of a certain group (gender or age) visits that individual store. | Popular items | HQ sends more of the products to the individual stores where they seem more popular. Also, seasons can change popularity of products where in this case, HQ would need to send more of certain products to most stores. | Store locations | HQ needs to predetermine how much inventory to send in order to replenish the store for a sufficient time depending on location. If a store is closer to the warehouse, then smaller amounts can be sent, but the further it is, more amounts might be needed. |

e. Information Source Information | Source of Data | Individual store inventories | Store sales records/receipts, HQ database, Store managers | Store demographics | Store sales records/receipts, HQ database, Store managers | Popular items | Store sales

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