Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

1 Subject

Amazon and WholeFoods

Amazon and WholeFoods

Q Ok, given our current state of the country, let's put our lesson to something much closer to home. The original discussion was about Amazon's purchase of WholeFoods (see linked article below). Let's move this discussion to the idea of inventory in the context of the pandemic. I would like to take this down two paths: 1) The shortage of essentials that are critical to everyday consumers, especially with the Corona virus, such as cleaning supplies, medicines, etc. And then the other mostly essentials, (yes toilet paper is an acceptable topic here) at retailers. What can be done to mitigate these issues and how would you handle stock piling upstream of the retailer? 2) Inventory in the healthcare industry. a) As the lecture states, services have inventories of people. So, what are hospitals et al., doing to ensure enough capacity/inventory? b) ICU beds, medical supplies, ventilators, etc. What happens when these run short? What is the role of everyone (hospitals, government, etc.) in ensuring that supply > demand? • Amazon Puts Whole Foods on Fast Track to Conventional Supermarket - WSJ.pdf

View Related Questions

Solution Preview

The bullwhip effect is the distortion of demand and increased volatility that occurs as forecasts and orders move from the retailer up to the manufacturer. When a spike in demand occurs, each party in the supply chain adds additional products to their orders to act as a buffer. A bullwhip effect indicates that a small error in assessing consumer demand has been amplified through a supply chain. This means communication between firms in a supply chain is imperfect leading to firms up the supply chain missing important information. As panic-buying resulted in supply shortages,