PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
11th Edition
ISBN: 9780135226742
Author: HEIZER
Publisher: PEARSON
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Chapter 11, Problem 12DQ
Summary Introduction

To determine: The ways by which Company W uses drop shipping technique.

Introduction: The orders from the customers are not stocked by the retailers but it is directly shipped either to the manufacturers or wholesalers who would deliver the product directly to the customers. This technique is known as drop shipping.

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Q46
Why did Gateway choose not to carry any finished-product inventory at its retail stores?
Case 1: Distribution woes hobble start-ups in India At 4 am every day, you will find a crowd of hawkers near the Chhatrapati Shivaji Railway Terminus in Mumbai. They line up to buy their daily inventory of newspapers and magazines from 15-odd distributors, all located in a dark lane outside the nearby New Empire Cinema. After making their purchases, the street vendors fan out into the city on bicycles, motorbikes, rickshaws, and trains. By 6 am, the crowd has vanished, and if you walk past the theatre during the day, you will most likely miss the nerve centre of magazine and newspaper distribution in Mumbai. Most hawkers in Mumbai have a cash budget of around US$3 or US$4 a day, and they usually have a similar amount tied up in unsold inventory (returns). Elsewhere in the country, vendors have even less cash to spare. The key question an entrepreneur wishing to launch a new periodical must ask is: Why would a hawker want to lock up his scarce capital in my product? Failing to ask that…

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PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB

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