In Chapter 11, we take a closer look at supply chains, logistics, and customer service. The growth in e-commerce and online retailing has spiked demand for warehouses—see “ US warehouses are costly and hard to come by, as e-commerce demand picks up ,” (CNBC, June 14, 2017). Use this article to logically project how these trends will impact customer service levels and each of the different costs shown in Exhibit 11-2.
This article “ Vast underground bomb shelter reappropriated by urban farmers ” (Wired.com, February 11, 2014), describes an innovative new “farm” located 100 feet below ground in southwest London. Zero Carbon Food uses a World War II bomb shelter designed to hold 8000 people. Fortunately it has not been needed since WWII and it has laid dormant — until now that is. A couple of entrepreneurs are growing broccoli, pak choi, and more using hydroponic growing techniques. One of the benefits — low shipping costs (something to talk about when you cover logistics) — and certainly appeals to the environmentally conscious segment of the market. What other benefits could Zero Carbon leverage? What [Continue Reading …]
This year unseasonably warm spring temperatures gave drivers of Good Humor ice cream trucks (which often roam neighborhoods in U.S. cities and towns) the opportunity to make some money early in the selling season. But many of these same drivers are now upset as Good Humor has run out of customer favorites — like the Toasted Almond and Chocolate Éclair ice cream bars. These drivers are important channel members for Good Humor, and when they can’t stock customer favorites everyone loses. This situation provides an opportunity to discuss the tradeoff faced by many producers of goods and services. When forecasting [Continue Reading …]