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Case Study: GATEWAY Presented By: Ariq Rahman ID: B1001024 Sabrina Farah Kaisar ID: B1001026 Md. Mushfiq
Case Study: GATEWAY Presented By: Ariq Rahman ID: B1001024 Sabrina Farah Kaisar ID: B1001026 Md. Mushfiq

Case Study:

GATEWAY

Presented By:

Case Study: GATEWAY Presented By: Ariq Rahman ID: B1001024 Sabrina Farah Kaisar ID: B1001026 Md. Mushfiq

Ariq Rahman

ID: B1001024

Sabrina Farah Kaisar ID: B1001026 Md. Mushfiq Alam Arko ID: B1001027 Mohammad Daulat Al Rashid

ID: B1001039

Nisa Nur Majumder ID: B1001046

Case Study: GATEWAY Presented By: Ariq Rahman ID: B1001024 Sabrina Farah Kaisar ID: B1001026 Md. Mushfiq

Case Overview

GATEWAY:

Case Overview GATEWAY:
Case Overview GATEWAY:

Why Multiple Production

Facilities???

  • Reach the local markets

  • Increase production facilities to meet the higher local demand

  • Locate in low wage areas

  • Near parts suppliers

  • Avoid higher tax areas/states

Why Multiple Production Facilities???  Reach the local markets  Increase production facilities to meet the
Why Multiple Production Facilities???  Reach the local markets  Increase production facilities to meet the

Advantages of Increasing No

of Production Facilities

  • Avoid production disruption due to

Worker Agitation

Supply Disruption

  • Reach the local markets

  • Increase production facilities to meet the higher local demand

  • Locate in low wage areas

  • Near parts suppliers

  • Avoid higher tax areas/states

Advantages of Increasing No of Production Facilities  Avoid production disruption due to  Worker Agitation
Advantages of Increasing No of Production Facilities  Avoid production disruption due to  Worker Agitation

Disadvantages of Increasing

No of Production Facilities

Disadvantages of Increasing No of Production Facilities
Disadvantages of Increasing No of Production Facilities

How Gateway decides which

production facility will produce

and ship a customer order

  • Primary objective: Reduce overall cost and increase maximum returns

    • Whichever is near to the customer

    • Whichever has less transportation cost

    • Whichever has less response time

    • Whichever can avoid taxation/Trade Barriers

How Gateway decides which production facility will produce and ship a customer order  Primary objective:
How Gateway decides which production facility will produce and ship a customer order  Primary objective:

Factors Considered When

Deciding Which Plant to Close

  • Primary objective: Reduce overall cost and close loss making/costly production facilities

    • When market demand reduces or shifts to other substitutes, whichever factory caters that market will be the first one to go

    • Wherever raw material is least available/transportation is costly

    • Whichever facility requires higher transportation cost

    • Whichever factory has higher production cost

      • Least available workforce/costly manpower

      • Power/Energy costs

  • Whichever factory goes through more trade barriers while catering to international market

Factors Considered When Deciding Which Plant to Close  Primary objective: Reduce overall cost and close
Factors Considered When Deciding Which Plant to Close  Primary objective: Reduce overall cost and close

Why not carry any finished

product inventory?

  • Storage cost

    • Accidents may lead to higher costs

  • Maintenance cost

  • Management/Operations cost in connection to the warehouse

  • Be more competitive; can introduce new products in a short notice

    • Intel’s new chips can be integrated as soon as they hit the market

  • Avoid loss from cases where some products are not sold when the demand shift to substitutes

Why not carry any finished product inventory?  Storage cost  Accidents may lead to higher
Why not carry any finished product inventory?  Storage cost  Accidents may lead to higher

Should a firm with an investment in

retail stores carry any finished

goods inventory?

  • For those products for which customers can wait for a few days there is no need

to have finished goods inventory

  • For those products for which customers cannot wait for the time required for the product to reach the customer from the production facility there needs to have a production facility

Should a firm with an investment in retail stores carry any finished goods inventory?  For
Should a firm with an investment in retail stores carry any finished goods inventory?  For

Characteristics of products that

are most suitable to be carried in

finished goods inventory

  • Nonperishable goods can only be stored

  • Goods that have least possible storage cost

  • Goods that have fluctuating/seasonal demand

    • Where SCM/CRM systems are not adequate to have knowledge of the market demand

  • Retailers store goods that have stable demand in the local market in the local market

    • Where there is a time gap between supply shipments from the manufacturer

    • Where there is a chance of import tariffs to increase

  • When there is a chance of the product price to increase

  • Characteristics of products that are most suitable to be carried in finished goods inventory  Nonperishable
    Characteristics of products that are most suitable to be carried in finished goods inventory  Nonperishable

    Characterizes products that are

    best manufactured to order

    • Where there is a demand from the customers for product customization

    • If it’s possible to manufacture as per the customer’s demand; the production process needs to be cost effective

    Characterizes products that are best manufactured to order  Where there is a demand from the
    Characterizes products that are best manufactured to order  Where there is a demand from the

    Is the Dell model of selling directly without retails stores always less expensive than a supply chain with retail stores???

    • Generally

      • In case of Customization; retail stores will incur higher cost for storage

    • However, it is not necessarily more profitable:

      • If customer demand is higher for retails stores

    where they can check out the product first hand;

    • If customer is satisfied with online shopping

    Is the Dell model of selling directly without retails stores always less expensive than a supply
    Is the Dell model of selling directly without retails stores always less expensive than a supply

    What are the supply chain implications

    of Gateway’s decision to offer fewer

    configurations???

    • Supplier

      • Suppliers needs to send fewer varieties of components

      • Management/Operational complexity/costs reduces

  • Internal Supply Chain: Transport of components within the factory is much less complex

    • Suppliers needs to send fewer varieties of components

    • Management/Operational complexity/costs reduces

  • Retailers/Dealers:

    • Suppliers needs to send fewer varieties of components

    • Management/Operational complexity/costs reduces

  • What are the supply chain implications of Gateway’s decision to offer fewer configurations???  Supplier 
    What are the supply chain implications of Gateway’s decision to offer fewer configurations???  Supplier 

    Thanks!!!

    Thanks!!!
    Thanks!!!