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  • Advantages of Store:: How The Effectiveness of Pull Relatively To Push May Differ Between NYC Vs LA?

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    Thirumalesh
    608 vizualizări4 pagini
    The document compares the advantages and disadvantages of stores and showrooms. It finds that stores offer conveniences like a wide selection and central location but can have higher prices and costs. Showrooms provide experiential shopping and reduce returns, while having lower maintenance costs than stores. The second document analyzes pull vs push inventory strategies for flagship stores in NYC and LA. It finds that pull generally achieves higher savings than push, except for fast-selling, inexpensive items which are better with push. Pull savings are greater in NYC at 42.08% than in LA at 34.29%.

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    The document compares the advantages and disadvantages of stores and showrooms. It finds that stores offer conveniences like a wide selection and central location but can have higher prices and costs. Showrooms provide experiential shopping and reduce returns, while having lower maintenance costs than stores. The second document analyzes pull vs push inventory strategies for flagship stores in NYC and LA. It finds that pull generally achieves higher savings than push, except for fast-selling, inexpensive items which are better with push. Pull savings are greater in NYC at 42.08% than in LA at 34.29%.

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    © All Rights Reserved
    Descărcați ca DOCX, PDF, TXT sau citiți online pe Scribd
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    608 vizualizări4 pagini

    Advantages of Store:: How The Effectiveness of Pull Relatively To Push May Differ Between NYC Vs LA?

    Încărcat de

    Thirumalesh
    The document compares the advantages and disadvantages of stores and showrooms. It finds that stores offer conveniences like a wide selection and central location but can have higher prices and costs. Showrooms provide experiential shopping and reduce returns, while having lower maintenance costs than stores. The second document analyzes pull vs push inventory strategies for flagship stores in NYC and LA. It finds that pull generally achieves higher savings than push, except for fast-selling, inexpensive items which are better with push. Pull savings are greater in NYC at 42.08% than in LA at 34.29%.

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    din 4

    Advantages of Store:

    1. Shopping Convenience
    2. Wide Choice
    3. Liberal Services
    4. Central Location
    5. Large Volume of sales
    Disadvantages of Store:

    1. Distance
    2. High Cost of Operation
    3. Higher Prices
    4. Difficult to Establish
    5. Absence of Personal Contact
    Advantages of Showrooms:

    1. Provides an Experience. When people go shopping, it's not always for a specific
    product.
    2. Amount of Returns Decline. Showrooms can also help to decrease the number of
    returns.
    3. Customer Trust Increases. Gaining customer trust is huge, and putting your products
    out on physical display is an honest move.
    Disadvantages of Showrooms:

    1. The maintenance cost is high compared to the store.

    How the effectiveness of Pull relatively to push may differ between NYC vs LA?

    1. Based on your calculation, is the pull strategy better than the push strategy for all
    product types in the flagship stores of NYC and LA? If not, for which product(s) is
    pull better than push?
    ANS
    In NYC Store:
    Under Hot Smart for the fast selling and experience items pull strategy have a huge
    savings.
    Under Hot feature we can see that push strategy is better than pull strategy as saving
    is negative 12.02%. So for fast selling and inexpensive items push strategy might
    work better.
    Under Cold Smart slow and expensive items the pull strategy can achieve the highest
    savings.
    Under Cold feature slow moving and inexpensive items the pull strategy can achieve
    the highest savings.

    In LA Store:
    Under Hot Smart for the fast selling and experience items pull strategy have a huge
    savings.
    Under Hot feature we can see that push strategy is better than pull strategy as saving
    is negative 15.91%. So for fast selling and inexpensive items push strategy might
    work better.
    Under Cold Smart slow and expensive items the pull strategy can achieve the highest
    savings.
    Under Cold feature slow moving and inexpensive items the pull strategy can achieve
    the highest savings.

    2. Based on your calculation, what are the net savings for the NYC and LA stores if we
    move from push to pull?
    ANS
    In NYC Store:

    %
    Savings  
    Pull vs.
      push

    Cold-
    Smart 88.40%

    Cold-
    Feature 65.50%
    Hot-
    Smart 53.86%

    Hot-
    Feature -12.02%
    In LA Store:

    %
    Savings  
    Pull vs.
      push

    Cold-
    Smart 86.70%
    Cold-
    Feature 37.56%
    Hot-
    Smart 42.51%

    Hot-
    Feature -15.91%

    So in the both stores we can see that pull can achieve a higher savings that a push
    strategy.

    3. Based on your calculation, In which region (NYC vs LA), pull may generate a greater
    saving relative to push?
    By comparing both the stores we can conclude that pull generates a greater savings
    than push.
    In NYC Store:

    Inventory Shipping
    Push cost cost Picking/Packing cost
    Hot- 431.63389
    Smart $4,834 8 18.8847458

    Hot- 1397.33333 359.14576


    Feature 3 3 15.8644068

    Cold- 626.666666
    Smart 7 6.192 1.158
    Cold- 23.422222
    Feature 388.8 2 1.87592593

    Total $1,47,970 $17,029 $771

    $1,65,770

    Inventory Shipping
    Pull cost cost Picking/Packing cost
    Hot- 2158.1694
    Smart 100 9 179.847458
    Hot- 1795.7288
    Feature 40 1 149.644068
    Cold-
    Smart 40 30.96 2.58
    Cold- 117.11111
    Feature 16 1 9.75925926
    Total $3,776 $85,147 $7,096
    $96,019
    % saving 42.08%

    In LA Store:

    Inventory Shipping
    Push cost cost Picking/Packing cost
    Hot- 326.88813
    Smart $2,913 6 14.520339

    Hot- 202.90169
    Feature 770.4242424 5 9.35423729

    Cold- 4.8558139
    Smart 492.6315789 5 1.10232558
    Cold-
    Feature 139.52 15.04 1.52666667

    Total $88,413 $11,488 $540

    $1,00,440

    Inventory Shipping
    Pull cost cost Picking/Packing cost
    Hot- 1634.4406
    Smart 100 8 136.20339
    Hot- 1014.5084
    Feature 40 7 84.5423729
    Cold- 24.279069
    Smart 40 8 2.02325581
    Cold-
    Feature 16 75.2 6.26666667
    Total $3,776 $57,439 $4,787
    $66,002
    % saving 34.29%

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