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AES Corporation (A): Global Sourcing Initiative
This case is a good fit for courses in operations management and business communications. It examines the procurement strategy of a global energy company by describing the overall change program led by the new chief procurement officer as well as specific information regarding the commodity for electric meters. See also the B case (UV3548). -
Musictoday, LLC: Implementing a Periodic Review Inventory System, Spreadsheet Supplement
Spreadsheet supplement for case UV3539. -
FreshDirect: Expansion Strategy
The Big Apple has been just the place for a direct home-delivery business like FreshDirect. Now the company wants to use the additional capacity in its meat-processing facility to expand into national competition. The description of the beef supply chain in this case helps students analyze the best way for FreshDirect to take on a "big boy" such as Omaha Steaks and to serve restaurants. -
Musictoday, LLC: Implementing a Periodic Review Inventory System
Musictoday is a unique company that provides on-line retailing services for such clients as the Dave Matthews Band and the Rolling Stones. But the lack of a formal inventory-management process has Musictoday concerned about stock-outs and lost sales in the future. This case introduces students to the Periodic Review System, and provides an opportunity to link the optimal review period with the EOQ concept. -
Whirlpool Corporation Global Procurement, Spreadsheet
Spreadsheet supplement for case UV0341. -
Whirlpool Corporation Global Procurement
This case introduces a framework for cost modeling.Two data sets (one for injection-molded plastic parts and another for compressors) allow students to apply the cost-driver framework in conjunction with basic spreadsheet and regression analysis. Although obviously applicable in a course on supply chain management, the case can also be used to teach competitive cost analysis for strategic decision making. -
eShip-4U
eShip is a small Israeli start-up with a potentially exciting new concept for the residential package-delivery value chain--the Automatic Delivery Machine (ADM). Much like today's ubiquitous ATMs, ADMs would allow consumers to have parcels delivered to a nearby ADM rather than to their residences. When a package is delivered, the consumer would be contacted, given a PIN, and could retrieve the package anytime, day or night. Currently, carriers (FedEx, UPS, and the U.S. Postal Service) bear huge costs for local deliveries (the so-called last-mile cost), perhaps as much as $6 billion annually. Most of this cost would disappear if packages could be delivered to ADMs rather than to residences. At the core of eShip's concept is a sophisticated information system that links all the ADMs over the Internet. This case focuses on eShip's attempt to formulate a business model to facilitate entering the U.S. market. The dilemma centers on the role that eShip should play in the value chain and with whom it should partner. Although the ADM concept potentially creates huge value, capturing some of that value is a daunting challenge, particularly in the face of the size and power of U.S. carriers. -
AES Corporation (B): Global Sourcing Initiative
This case presents the results of the reverse auction for electric meters as described in the A case (UV3547). -
Competitive-Cost Analysis: Scale and Utilization Calculations
An understanding of the factors that drive the microeconomics of a business provides the insight needed for strategic and tactical improvements in operational effectiveness. Competitive-cost analysis, a method for analyzing the cost structure of a company, represents a strategic application of cost modeling. The first note in this three-part series (UV3521) identifies the basic framework and principles for developing accurate and comprehensive cost models. The second note (UV3558) discusses specific techniques that will further assist in analyzing cost drivers for competitive analysis. This final note provides detailed guidance on calculating scale curves and utilization effects. -
Competitive-Cost Analysis: Cost-Modeling Techniques
Competitive cost analysis, a method for analyzing the cost structure of two competing companies, represents a strategic application of cost modeling. The first note in this three-part series on competitive cost analysis identified the basic conceptual framework and principles for developing accurate and comprehensive cost models with four categories of cost drivers -- design, facility, geography, and execution. The framework coupled with cost-modeling techniques can help the operations analyst/consultant achieve the quantitative rigor required to ensure solid operations decisions at the strategic and tactical level. This note provides a general discussion of four specific tools that will further assist in analyzing cost drivers for competitive analysis. These techniques include teardown analysis, public data sources, scale curve and utilization curve. The final note in this three-part series will provide step-by-step guidance on estimating scale curves and calculating utilization impact.