Week 6 Bus 650

During the game, I realized that wide gaps in orders of every role in the supply chain such as factory, distributor and retailer create inventory management challenges. For example, distributor records 0units between week1-week 4 compared to retailer within the same period. The retailer records 3units, 5units, 2units and 2units between weeks 1- week 4. The same applies to factory with 0units from weeks 2-4. Addressing inventory management problems requires developing an average unit level to avoid disappointing customers when demand

Explain the methods of depreciation. Explain the methods of depletion. How do depletion and depreciation methods differ? Compare and contrast the depreciation and depletion methods. Use scholarly references (no Wikipedia, Answers.com, etc.) to support the points you make in your paper.

They have changed relationships to better suit the changing environment they find themselves in and joined some relationships for example certain distributers to adapt to market conditions. They have utilised their relationships with distributers to accelerate their product release and in some instances given more downloadable content to customers who buy from them. This has all led from their utilisation of the value web model. GameStop’s use of information systems have made in possible not only to adapt to changing circumstances but also to establish their web models and operate them effectively. We see this with GameStop’s giving the e-commerce ability to their customers which allow for customers to buy products with the click of a

Bargaining Power of Suppliers: The bargaining power of suppliers in the industry is low. There are numerous suppliers in this industry, and the large department stores have the ability to negotiate for the lowest prices. In addition, the switching costs are low, as the products are not highly differentiated. There are a large volume of purchases in the industry, allowing the department stores to exert even more power over the suppliers.

Establish relationships with your suppliers and employees starts with good and regular communication. It can be taken further by having group activities or teams. Also by establishing mutually beneficial achievable goals.

However, GameStop is still at a disadvantage, because there are such a large number of competitors in the industry. Buyer’s bargaining power are high, since there is no brand loyalty in the industry. Customers are very well aware of the market price of a product and will look for the best deals they can find. Suppliers have high bargaining power since suppliers can choose to integrate forward and sell their products themselves. The success of the retail gaming industry is very dependent on the availability of supplier’s goods. Additionally, since there are low barriers of entrance, substitute products and new entrants often appear in the market. Since most competitors in the industry do not have a strong presence, the expected retaliation towards new entrants is low. An increasing popularity of smartphone games and social media games such as Farmville on Facebook, allows customers to play against friends. Although these social media games do not offer the same experience as a video game, the fact that virtually no switching cost is associated with switching to a competitor’s game and since they are so cheap compared to video game disk and consoles, can easily drive customers from video gaming to online gaming. (Exhibit 2)

Team 2 has researched and completed a comparative analysis of Mattel’s supply chain design and related costs with that of its major competitor Hasbro and the toy industry. What follows, is a brief background of Mattel’s traditional (non-electronic game) sector, its key competitors and Mattel’s use of supply chain management concepts in addressing the competitive landscape to gain a competitive advantage. The global toy and game market grew by 7.2% in 2007 with a value of $106.1 billion and by 2012, is forecasted to have a value of $126.2 billion, an increase of 18.9% over 2007. The toy market is divided into three primary sectors, namely game consoles, game software and traditional toys and games. Traditional toys and

Best Buy’s financial performance and management stability from 2010-2013 had been consistently negative. Although BB was the largest electronics retailer ($50B in annual sales), its stock price had dropped from $45 to $15 per share in 2 years. Earnings per Share fell by more than 200% in 2012 alone. Revenue had been increasing; however, store sales and profitability were trending negatively. Competitively, the landscape was increasingly challenging; margins were slim, Apple’s high end /

Economic analysis: The average age for gamers have increased to 30 years old this could be due to research reports that found the benefits of games is improved memory and alertness. There are even video games for fitness and memory improvement such as the Wii fitness and Brain Age.

| The company has a few different suppliers but relies on each supplier to bring in the stock for them to sell, if they didn’t have more than one supplier then they wouldn’t have anything to sell if one stopped production or went on strike.

Many companies have always viewed logistics as only a transport cost solution. Though transportation cost represent a huge expenditure for production companies, inventory management has the ability to significantly improve a company’s performance and reduce costs greatly.

Read the case study below “Harvey Industries”. Provide reasoning for the current financial distress of the company and make recommendations for improvements to the new company president. Include at least one specific recommendation for both Supply Chain Management (chapter 15) and Inventory Management (chapter 13), as well as any other recommendations you deem necessary from your reading. Provide your recommendations in a 2-4 page APA style paper.

Supply Chain Management plays a vital role in our hospitals today. With the growing cost of healthcare and new technologies, it is vital for hospitals to run as efficiently as possible and without jeopardizing care. To the materials manager and to the financial minds of a hospital the area of supply chain is a tedius task at best, the kind of planning, strategizing and measuring that seldom goes recognized and rewarded. The work involved with inventory control fits tightly within that description.

The most important part in supply chain management is managing inventory as company operation tries to minimize cost from supplier, manufacturing, and production. Regarding to inventory, the management accounting must have understand the basic of inventory management. There are a numbers of techniques including: ABC system, EOQ model, TQM, and JIT system. All those several system are relating in managing control as EOQ still has to be considerate in JIT methodology, or quality control is also important part in JIT.

Supervalu Incorporation is one of the largest grocery stores in the United States with more than 2,400 stores, among these stores the corporation also outsources to third parties which are not named in this discussion (Edmonds, Tsay & Old, 2011). However, grocery stories that are the best known that are in-house under the ownership of Supervalu are as followed; Albertson, Farm Fresh, Jewel-Osco and Save-a-lot (Edmonds, Tsay, & Old, 2011). On January 12th, 2010 Supervalu made the decision to reduce items from their present time inventory. The reduction would reduce the cost of production by 25% from the last segment production earnings of 240,000 (Edmonds, Tsay & Old, 2011). In this discussion, we will try to deduce the effect and impact that will result in Supervalu decision to reduce or eliminate an item from their inventory (Edmonds, Tsay & Old, 2011).