MKT 341 Week 14 Assignment (1)

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University of Hawaii, West Oahu *

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341

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Marketing

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Feb 20, 2024

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docx

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Uploaded by BarristerMoonLeopard43

MKT-341 Week 14 Assignment Comment on this statement: “AEO established a strategy based on what its road map would look like for the next 5 years.” American Eagle Outfitters (AEO) took a proactive approach to their future by mapping out their path for the next five years. This thoughtful planning involved a thorough examination of their customers, order trends, and logistics. To better serve their large East Coast customer base, AEO made the strategic decision to open a second fulfillment center in Hazleton, Pennsylvania. This long-term planning is essential for any business that wants to grow steadily and keep their customers happy. Explain the concept of “channel-immune” distribution centers. How does this fit with retailers’ store location decisions? “Channel-immune” distribution centers are designed to streamline operations by using a singular inventory, workforce, and fulfillment system for both physical stores and E-commerce. This concept fits well with retailers' store location decisions as it enables more efficient inventory management and reduces logistical complexities. By consolidating distribution efforts, retailers can optimize their supply chain and provide faster, more reliable service to both their online and brick-and-mortar stores. What factors should be considered in determining where to locate distribution centers? Explain your answer. When determining locations for distribution centers, several factors should be considered: ○ Customer demographics and proximity to ensure swift delivery. ○ Transportation infrastructure for efficient movement of goods. ○ Labor costs and availability of a skilled workforce. ○ Operational costs, including real estate, utilities, and taxes. ○ Accessibility to major markets and store locations to reduce transit time and costs.

What factors should be considered in determining how much inventory to carry at the store rather than at a distribution center? Why? In deciding how much inventory to carry at the store versus the distribution center, retailers should consider: ○ Sales velocity and turnover rates to ensure in-store stock meets customer demand without overstocking. ○ Storage space and cost-effectiveness of maintaining inventory at different locations. ○ Product nature (e.g., perishable vs. non-perishable) and handling requirements. ○ Customer buying patterns and preferences, including demand for in-store versus online purchases. ○ Lead time for replenishing stock from the distribution center to the store.

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