STRATEGIC OPERATIONS MANAGEMENT
Supply Chain Co-ordination at Nike, Xilinx and Procter & Gamble Issue date: 1st December 2011
Case Studies: Nike, Xilinx and Procter & Gamble
The cases concern supply chain co-ordination, forecasting and inventory management issues in three supply chains. Case 1 discusses the problems faced by Nike when it implemented a new demand forecasting software solution. It also highlights the remedial steps taken by the company to correct the situation. Case 2 examines how Xilinx, a reputed supplier of electronic parts, restructured its distribution systems after it encountered a mismatch in demand and supply while selling its products via intermediate distributors. Case 3 examines the impact of the bullwhip effect on the supply chain. It discusses how the order rate for Pampers Diapers at P & G varied across the supply chain and the steps taken by P & G to overcome this problem.
Case 1 Questions
1. List using bullet points the reasons that prompted Nike to change its approach to demand forecasting and the outcomes of this change.
2. List the likely reasons that resulted in such a huge gap between demand and supply at Nike. Discuss what could have been done to avoid this situation.
Case 2 Questions
3. ‘Cisco had to undertake an inventory correction of $2million’ (sic). List using bullet points the probable reasons for this correction. Describe the steps Xilinx took to resolve the problem.
4. Tabulate the possible advantages and disadvantages of this new approach.
Case 3 Questions
5. List using bullet points the steps P & G took to reduce the impact of the bullwhip effect and other approaches P & G could adopt to reduce bullwhip.
6. Identify a key order winner for Nike, Xilinx and P & G. Explain how the supply chain for each company is constructed (or should be constructed) to support this order winner.
Assignment contribution: 30%
Length: The report should be no more than 7 pages in length.
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