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Keiretsu is a business network composed of manufacturers, supply chain partners, distributors and

financiers who remain financially independent but work closely together to ensure each others
success. In Japanese, the word keiretsu means group. In business, the word is often used as a
synonym for partnership, alliance or extended enterprise. Thus it aids Supply chain by strategic long-
term trade relationships with key partners and risk management by sharing risks among them and
high value adding production.

Collaboration is the process of two or more people or organizations working together to realize or
achieve something successfully. Thus it helps SCM within an organisation to coordinate and
collaborate activities within many departments.


by Rajendra Todalbagi - Wednesday, 8 February 2017, 2:57 PM

Compare the impact on responsiveness and efficiency of a supply chain under different SC models
viz: MTS, MTO & CTO.

Make to stock (MTS)

The (MTS) method requires an accurate forecast of demand in order to determine how much stock
should be produced. If demand for the product can be accurately fore casted, the MTS strategy is an
efficient choice for production.

MTO (Make to Order)

Manufacturing after receiving customer's orders means to start a pull-type supply chain operation
because manufacturing is performed when demand is confirmed, i.e. being pulled by demand. From
the viewpoint of supply chain management, it has been proven that those who can satisfy due dates
promised with customers and can shorten lead times will have competitive advantage.


The CTO supply chain initiates on the arrival of order, then assembly of product starts from
components which have already been replenished in-to the inventory. In this model, the customer
enjoys greater final-item choices

Sales return & SCM

by Rajendra Todalbagi - Wednesday, 8 February 2017, 3:44 PM

How do sales return impact SCM performance ?

The greater part of the organizations don't considered the operational cost of profits on the grounds
that these expenses can put in the money related details of office operations. Here on the off chance
that where each arrival item comprise transportation to the client, then back to the organization and
hence more sales return increases the cost which will directly impact profit margin

Inventory types
by Rajendra Todalbagi - Wednesday, 8 February 2017, 3:19 PM

Discuss relation between SC performance and cycle stock, safety stock & seasonal stock.

Safety stock is an additional quantity of an item held in inventory in order to reduce the risk that
the item will be out of stock. Safety stock acts as a buffer in case the sales of an item are
greater than planned and/or the supplier is unable to deliver additional units at the expected

Cycle stock is the average amount of inventory a business needs to meet customer demand
between the times it orders more inventory from suppliers. A company goes through its cycle
stock inventory as it sells products and restocks inventory.

Seasonal stock is the inventory build during low demand season for the peak season

Keiretsu & Collaboration

by Rajendra Todalbagi - Wednesday, 8 February 2017, 2:49 PM

What is the difference between Keiretsu and Collaboration ? What is the impact on Supply Chain by
following theses pracaties.

Power of virtual integration

by Rajendra Todalbagi - Wednesday, 8 February 2017, 3:50 PM

Write comprehensive summary of Interview with Mr. Dell in not more than 100 words, without losing
on the essence of the interview content.(Refer HBR article)
26 words
In the article of The Power of Virtual Integration: An Interview with Dell Computers
Michael Dell, the author interviewed with the successful business giant, Michael
Dell, and pointed out the key to Dells success.
Dells business model is a combination of efficient supply chain and focused
strategy. This model allows Dell to minimize cost, speed time and specialize its
customer segments. By eliminating the middleman, Dell could reduce operation cost
and accelerate inventory turnover.
Dells success proves its business model of value chain is powerful, and both cost
and time efficient. Todays best practice in supply chain is virtual integration. Virtual
integration relies on information technology to improve the value chain of
manufacturers, suppliers, and customers. As a result, a business is able to
concentrate on its brand and target market development.

Selection of SCM model

by Rajendra Todalbagi - Wednesday, 8 February 2017, 2:59 PM

List and identify the drivers for selection of different SCM models (MTS, MTO and CTS).

Drivers for selecting SCM model

1. Production
2. Inventory
3. Location
4. Transportation
5. Information