UGBA 10 Lecture Notes - Lecture 14: Cash Flow, Vertical Integration, Mass Customization

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 10
• Professor: John Briginshaw

Document Summary

Because of increased competition and changes in consumer behavior are forcing companies to develop new products at a faster pace than ever before. The need to replace products every few years to keep up with demand forces companies to streamline their supply networks. Sharp changes in demand make it even more necessary to efficiently clear inventory of unwanted goods or (even better) to avoid producing excessive amounts of products, above demands. Designing the right supply chain is key. Designing a firm"s supply chain seeks to meet the competitive priorities of the firm"s operations strategy. Good focus and understanding of our products/services and the best way they can align to processes, customers and suppliers. Link services/products with customers, suppliers, and supply chain processes. Measures how quickly the merchandise of a retailer is sold and replaced over a given time. Higher turnover implies a lower holding cost for the retailer. Advantage: inventory pooling: reduced total inventory cost.