Yedioth Case
Budget: $30 – $250 USD
Operations management case in magazine distribution. Five questions:
1. In the current distribution model, where each retailer is supplied once a week independently of all other retailers, what would be a good method to compute the quantity shipped to each retailer to guarantee that 99% of customers will be served? Apply your approach to compute recommended quantities to the 50 retailers (explain the methodology in the body of the report and provide the results in appendix).
2. If Yedioth could implement full pooling among all of the 50 retailers what would be the estimated benefit in terms of total production levels and returns if the required service level is 99%? (Note: Full pooling means that somehow all of the retailers could be supplied in-real-time from the same pool of inventory.)
3. Suppose that one could implement full pooling only among retailers that are treated by the same sales agent. What would be the potential benefit in terms of production levels and returns, assuming 99% service level. Compare to your #2 answer.
4. Propose more realistic processes/strategies that leverage the fact that the sales agent visits each retailer in the middle of the week. What would the benefit be of these processes/strategies?
5. What do you think are the organizational challenges that Assaf will have to address?
1. In the current distribution model, where each retailer is supplied once a week independently of all other retailers, what would be a good method to compute the quantity shipped to each retailer to guarantee that 99% of customers will be served? Apply your approach to compute recommended quantities to the 50 retailers (explain the methodology in the body of the report and provide the results in appendix).
2. If Yedioth could implement full pooling among all of the 50 retailers what would be the estimated benefit in terms of total production levels and returns if the required service level is 99%? (Note: Full pooling means that somehow all of the retailers could be supplied in-real-time from the same pool of inventory.)
3. Suppose that one could implement full pooling only among retailers that are treated by the same sales agent. What would be the potential benefit in terms of production levels and returns, assuming 99% service level. Compare to your #2 answer.
4. Propose more realistic processes/strategies that leverage the fact that the sales agent visits each retailer in the middle of the week. What would the benefit be of these processes/strategies?
5. What do you think are the organizational challenges that Assaf will have to address?