Item

Revenue
COGS parts

Inventory
Account Receivable
Account Payable
Average Inventory
Average AR
Average AP

Days Inventory Outstanding (DIO)(Days) Average inventory*365/COGS

Days Sales Outstanding (DSO)(Days) Average AR*365 / Revenue
Days Payable Outstanding (DPO)(Days) Average AP*365/COGS
Cash Conversion Cycle(CCC)(Days) CCC = DIO + DSO - DPO
Fiscal Year 2017 Fiscal Year 2016
14,162.13 Not needed
6,221.87 Not needed

2194.09 1610.12
994.63 759.06
1671.26 2138.72
1902.105
876.845
1904.99

111.5851544632
22.5988904918
111.7544002044
22.4296447505
1904.99
 Market Demands and Duties(millions)

Markets N. America S. America Europe (EU) Europe (Non Japan

EU)
Sleekfon Demand 10 4.8 20 3.6 2
Sturdyfon Demand 12 1.2 4 9.6 7
Total 22 6 24 13.2 9
Import Duties (%) 3 20 4 15 4

Plant Capacities and Costs

Capacity(millions Fixed Cost / year($ Variable Cost / Fixed cost on

unit) million) Unit($) scale up ($
millions)
Europe (EU) 20 100 6 1000
Sleekfon N. America 20 100 5.5 1000
S. America 10 60 5.3 1000
Europe (EU) 20 100 6 1000
Sturdyfon N. America 20 100 5.5 1000
Rest of Asia 10 50 5 40

Transportation Costs($ per unit)

N. America S. America Europe (EU) Europe (Non Japan

EU)
N. America 1 1.5 1.5 1.8 1.7
S. America 15 1 1.7 2 1.9
Europe (EU) 1.5 1.7 1 1.2 1.8
Europe (Non EU) 1.8 2 1.2 1 1.8
Japan 1.7 1.9 1.8 1.8 1
Rest of Asia / 2 2.2 1.7 1.6 1.2
Australia
Africa 2.2 2.2 1.4 1.5 1.9

Variable Production Costs, Transportation Costs and Duties From Plants to Markets

N. America S. America Europe (EU) Europe (Non

EU)
Europe (EU) 12.8750 15.2400 12.0000 14.0300
Sleekfon N. America 11.5000 14.4000 12.4800 14.1450
S. America 27.0890 12.3000 13.5200 15.2950
Europe (EU) 12.8750 15.2400 12.0000 14.0300
Sturdyfon N. America 11.5000 14.4000 12.4800 14.1450
Rest of Asia 12.3600 14.6400 12.1680 13.3400

Quan
 N. America(millions) S. America(millions) Europe (EU) Europe (Non
(millions) EU)(millions)

Europe (EU) 0.00 0.00 4.40 13.20

Sleekfon N. America 2.00 0.00 0.00 0.00
S. America 0.00 6.00 0.00 0.00
Europe (EU) 0.00 0.00 19.60 0.00
Sturdyfon N. America 20.00 0.00 0.00 0.00
Rest of Asia 0.00 0.00 0.00 0.00
Demand met 0.00 0.00 0.00 0.00

Total Cost for Merged Network = 1661.188

 Rest of Africa
Asia/Australia
6 1.2
9 1.2
15 2.4
22 25

Scale up Fixed cost on Scale up

capacity(millio scale up ($ capacity(million
ns) millions) s)
0 1000 0
0 1000 0
0 1000 0
0 1000 0
0 1000 0
10 70 20

Rest of Africa
Asia/Australia
2 2.2
2.2 2.2
1.7 1.4
1.6 1.5
1.2 1.9
1 1.8

1.8 1

ants to Markets

Japan Rest of Africa

Asia/Australia
13.3120 15.4940 15.5000
12.6880 15.2500 15.8750
13.7280 16.4700 16.8750
13.3120 15.4940 15.5000
12.6880 15.2500 15.8750
11.6480 11.0000 14.7500

Quantity Shipped
Japan(millions) Rest of Africa(millions) Scale up Scale up Production
Asia/Australia( capacity(millions) capacity(millions)
millions)
0.00 0.00 2.40 0.00 0.00 20.00
4.00 0.00 0.00 0.00 0.00 6.00
0.00 0.00 0.00 0 0 6.00
0.00 0.00 0.00 0.00 0.00 19.60
0.00 0.00 0.00 0.00 0.00 20.00
5.00 15.00 0.00 1.00 0.00 20.00
0.00 0.00 0.00
capacity

20
20
10
20
20
20
Competitive Strategy

Supply chain strategy

Utilisation of all supply chain drivers

Trade-off among drivers to achieve strategic fit

Walmart Seven Eleven Japan

The improvement of
chain performance
focuses on the
operation convenience
and the total cost
reduction such as cross
docking, the reduction
in inventory, and
optimum order
No inventory is stored at Wal-Mart's distribution centers fulfillment.

7-eleven built the store

first and if the few
stores in certain area
were built then they
Wal-Mart's highly-automated distribution centers, which create the regional
operate 24 hours a day and are served by Wal-Mart's truck distribution center to
fleet, are the foundation of its growth strategy and supply satisfy supply to the
network. store.
Wal-Mart established the distribution center first and the store
built in certain area from distribution center

The limited space at

When entering a new geographic area, the company first each store makes it
determines if the area enough stores to support a distribution necessary to manage
center. inventory effectively.

The company deals the

issues by employing
regional distribution
center so as to
properly manage the
A distribution center was strategically placed so that it could demand and operation
eventually serve 150-200 Wal-Mart stores within a day at the store outlets.
The company's hub-and-spoke distribution network utilizes a
system of manufacturer storage with customer pickup.

Each of 7-eleven
outlets has its own
unique characteristic.
These unique
characteristics make
the distribution
network more
The use of trucks raises transportation costs but is justified in complicated and
terms of reduced inventory. difficult.
The more responsive
chain, the more cost in
operation.