ISCM Case 2

Duco Leune / 500691651
Pepijn Cohen / 500709709
Varol Keskin / 500682873
2IBS4
Mr. Meent

Table of Contents

1a - Next to the price, what other criteria are relevant in general when a company selects a supplier? Explain your answer…………………………………………………………………………………………………………..1 1b - Which specific requirements do potential suppliers of IKEA need to meet in order to be considered as supplier? 3 1c - How does IKEA manage the relationship with selected suppliers to ensure that they perform as expected? 4 2a. - Make a comparison between the three offers described in addendum 2. Present the comparison in a table with three columns. Also include an overview of the total costs per potential service provider for the first year. Based on the comparison, which service provider should Jan de Vries select? Explain your answer. 4 2b - Jan de Vries found proposals quite difficult to compare based on the received information. What should he do differently the next time he asks for an RFQ? Explain your answer. 5 3a - Describe IKEA’s distribution network, i.e., its approach to transport and warehousing (outside of stores). 6 3b - What is the role of customers in IKEA’s logistics both within and outside of stores? What are the consequences of taking this logistics approach for IKEA and for customers? Explain your answers. 7 4b - Describe the business strategy and supply chain strategy of IKEA. In your answer, you should pay attention to: - IKEA’s mission statement and vision; - IKEA’s core values; - The (long term) strategic supply chain decisions that IKEA made. 8 5a - Use a Dupont chart to calculate the Return on Assets (ROA), based on the fictional financial information included in addendum 3 in the case description. In addition, present separate 3 calculations of ROA in the case of a reduction in inventory of 10, 20, 30, 40 and 50