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Global Supply Chain Management“Restocking and Expansion

Strategies”

Team Name: SASE 31st Round Room: RAWLS 3091

Minghao LiAnqi ShangSui Zhang

Boon Keat Khoo

• Stiffer competition from both domestic and international counterparts

• Increasing share of organized players

Sui ZhangChallenges for Geddy’s (Sui Zhang)

40%

20%

15%

25%

Indian Ice-cream Market Share

Amul

Kwality Walls

Vadilal

Regional Players

• Seasonal nature of ice cream product

• Underdeveloped Cold Chain in India

• Fluctuating demand for different flavors and

limited stocking space

Sui ZhangChallenges for Geddy’s (Sui Zhang)

• Target Service Level (Wk1-13; Wk 44-55)

• Scaled Stocking Level (Wk14-20)

• Common Level (Wk21-28)

• Target Level for Top 3 Margin (Wk29-25)

• Target Level for Top 2 Margin (Wk36-43)

Sui ZhangStocking Policies of Geddy’s (Sui Zhang)

Sui Zhang

• Target Service Level Policy is implemented for the longest time (25 wks)

• Target for Top Margin Policy is the second (15wks)

25

78

7

8

Weeks of policy Implementation

Target Service Level Policy

Scaled Stocking Level Policy

Common Service Level

Target Level for Top 3Margin

Stocking Policies of Geddy’s (Sui Zhang)

Sui Zhang

• Common Service Level Policy generates the highest profit (108,800 Rupee)

• Target Service Level Policy generates the lowest profit (78,400 Rupee)

Profitability of stocking policies (Sui Zhang)

0

200

400

600

800

1000

1200784

1021 1088

808919

Average Weekly Profit(100 Rupee)

Sui Zhang

• Target Service Level Policy generates the highest profit (98,300 Rupee)

• Target Top Margin Policy generates the lowest profit (63,500 Rupee)

0400800

983 952 892635 832

De-seasonalized Weekly Profit(100 Rupee)

De-seasonalized Profitability (Sui Zhang)

Sui ZhangInefficient stocking policy (Sui Zhang)

0 10 20 30 40 50 60300

500

700

900

1100

1300

200

250

300

350

400

450

500

Week

Weekly

Pro

fit

(100 R

upee)

Tota

l W

eekly

Sale

s

Weekly Profit (100 Rupee)

Total Weekly Sales

0 10 20 30 40 50 6040

50

60

70

80

90

100

110

120

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Week

Avera

ge T

em

per-

atu

re

Seasonal Faco

tor

of

the D

em

and

Average Temperature (F)

Seasonal Factor of Demand

Sui ZhangMismatch of Margin vs. Demand (Sui Zhang)

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 550

20

40

60

80

100

120

140

Sales Fluctuation

Sale

s

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 550

20406080

100120140160

Stock Fluctuation

Stoc

k

0 10 20 30 40 50 60300

500

700

900

1100

1300

200

250

300

350

400

450

500

Week

Wee

kly

Pro

fit

(100

Ru

pee

)

To

tal W

eekl

y S

ales

Weekly Profit

Total Weekly Sales

Sui ZhangForecasting (Minghao Li)

0 10 20 30 40 50 6040

50

60

70

80

90

100BT

Week

Sale

Uni

t

Y = -0.0549X2 + 2.9326X + 51.982R² = 0.7842

Sui ZhangShort-term Strategy (Minghao Li)

Week 29-35 Top Margin Policy (Average) New Policy (Average)

TV 126 102

BBS 137 103

LL 69 50

BT 18 95

Total 350 350

Week 29-35 Top Margin Policy (Average) New Policy (Average)

TV 111 100

BBS 121 105

LL 42 48

BT 76 90

Total 350 343

Sui ZhangShort-term Strategy (Minghao Li)

Recorded Profit Predicted Profit10000

11000

12000

13000

14000

15000

16000

13,007

15,033

Week 29 to Week 43

To

tal P

rofi

t (1

00

Ru

pe

e)

16%

Recorded Profit Predicted Profit38000

40000

42000

44000

46000

48000

50000

52000

48,457

50,483

Total Profit

To

tal P

rofi

t (1

00

Ru

pe

e)

Sui ZhangLong-term Strategic Expansion (Minghao Li)

• Viability

Sufficient manufacturing capacity

High demand on GoGeddy’s ice-cream

• Expansion Strategy

Transform business model

Locate new stores near manufacturing

centers

Manuf

Store

Store

Store

Store

Sui ZhangLong-term Strategic Expansion (Minghao Li)

• Benefit

Ensure stable material supply

Bargaining power with bulk order

Lower supply chain cost

Better raw material quality

Potential growth in new market

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