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Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University ةيدوعسلا ةيبرعلا ةكلمملا ميلعتلا ةرازو ةينورتكللإا ةيدوعسلا ةعماجلا College of Administrative and Financial Sciences Assignment 1 Introduction to Operations Management (MGT 311) Due Date: 14/10/2023 @ 23:59 Course Name: Student’s Name: Course Code: MGT 311 Student’s ID Number: Semester: First CRN:12501 Academic Year: 2023-24-1 st For Instructor’s Use only Instructor’s Name: Dr. Mir S Satar Students’ Grade: / 10 Level of Marks: General Instructions – PLEASE READ THEM CAREFULLY The Assignment must be submitted on Blackboard ( WORD format only ) via allocated folder. Assignments submitted through email will not be accepted. Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. Students must mention question number clearly in their answer. Late submission will NOT be accepted. Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Submissions without this cover page will NOT be accepted.
Question one Benetton's supply chain operations are characterized by a unique and flexible approach to both the supply and demand sides. On the supply side, the company relies on a network of contractors, many of which are owned or partly owned by Benetton employees. These contractors provide knitting and assembly services for Benetton's garments, and they, in turn, utilize sub-contractors for manufacturing tasks ( He et al., 2020). This arrangement offers two significant advantages: lower production costs due to the efficiency of smaller supply companies, and the ability to absorb fluctuations in demand by adjusting supply arrangements. On the demand side, Benetton employs agents responsible for specific geographical areas, and they play a pivotal role in store development ( Gong et al., 2022). The stores themselves have limited inventory space, necessitating fast and dependable deliveries. Benetton achieves this through a practice of initially manufacturing garments in grey and dyeing them only when specific color demands arise, allowing for relatively rapid deliveries. Question two The specialty of Benetton's contractors lies in their ability to provide cost- effective and flexible manufacturing services. These contractors, many of which have ties to Benetton employees, offer efficiency and cost advantages in the production process. Their size and structure enable them to keep costs low, contributing to the overall cost- effectiveness of Benetton's supply chain ( Sarkar & Bhuniya, 2022). Moreover, the contractors' flexibility allows Benetton to quickly adjust its manufacturing and production processes in response to fluctuations in demand, which is a key strength in the fast-paced fashion industry.
Question three Benetton's supply chain method provides a competitive advantage over its competitors. It allows the company to maintain lower production costs, offer relatively fast deliveries to stores, and quickly respond to changes in customer demand for specific colors. This agility in adjusting supply arrangements and their innovative "grey to dye" production approach enhances their competitive edge ( Delic & Eyers, 2020). However, the sustainability of this method in the long term depends on several factors, such as evolving customer preferences, the ability to maintain efficient contractor relationships, and the environmental impact of their dyeing process ( Singh et al., 2019). Benetton may need to adapt to changing market dynamics and environmental concerns to ensure the long-term viability of their supply chain strategy.
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References Delic, M., & Eyers, D. R. (2020). The effect of additive manufacturing adoption on supply chain flexibility and performance: An empirical analysis from the automotive industry.   International Journal of Production Economics ,   228 , 107689. Gong, Q., Ban, M., & Zhang, Y. (2022). Blockchain, Enterprise Digitalization, and Supply Chain Finance Innovation.   China Economic Transition= Dangdai Zhongguo Jingji Zhuanxing Yanjiu ,   5 (2), 131-158. He, P., He, Y., & Xu, H. (2020). Buy-online-and-deliver-from-store strategy for a dual- channel supply chain considering retailer’s location advantage.   Transportation Research Part E: Logistics and Transportation Review ,   144 , 102127. Sarkar, B., & Bhuniya, S. (2022). A sustainable flexible manufacturing–remanufacturing model with improved service and green investment under variable demand.   Expert Systems with Applications ,   202 , 117154. Singh, R. K., Modgil, S., & Acharya, P. (2019). Assessment of supply chain flexibility using system dynamics modeling.   Global Journal of Flexible Systems Management ,   20 , 39-63.
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