Question1:

When a convenience store tries to be more responsive to customer demand, it is

also exposed to ambiguity due to fluctuations in demand. A convenience store,
however, can use the following practices to be more responsive to the demand:
1. Rapid Replenishment: Seven Eleven used rapid replenishment to micromatch supply and demand. It was more like Just in Time where you supply the
stores what they need and when they need it. This saves on the inventory
holding costs.
2. Deployment of apt technology: Apt information systems like integrated
store management system used by Seven Eleven can help to better match
supply and demand reduce delivery time and hence become more
responsive.
3. Vertical Integration using combined delivery system: Example of this
strategy like Seven Eleven distribution center aggregated supplies from
various suppliers to 4 types of trucks and then each truck delivered to
multiple outlets. This drastically helps to reduce delivery time.
Risks associated with these strategies are uncertainty/fluctuations in demand
which can either make the strategy redundant or may increase the inventory
holding costs instead of reducing it.