Seven Eleven Supply Chain Case Study

Facility location is the actual physical location for the storing, assembling and fabricating of the product in the network of supply chain. And the decision on the choices of facility location affects the performance of the supply chain.

For the choices of facility locations of Seven-Eleven, the first store of Seven-Eleven located in Tokyo. Only have one location can be centralized and have the economies of scale. Since when the product was being stored and manufactured in one place, Seven-Eleven can increase its efficiency. However, it also decreased its responsiveness. In 2014, with the demand for “close-by, convenience stores”, Seven-Eleven had included the franchise system. It means some of Seven-Eleven Japan stores were owned by its

And it is about the quantity and time.

For the inventory management of Seven-Eleven, it can have a higher responsiveness by making good use of its inventory. When the demand and supply mismatched, inventory would exist. To increase its responsiveness, it need to increase the inventory level. By a higher inventory level, the production cost will be lower due to the economies of scale. Besides, the product should be available at the time that the customer wants it. To improve the situation of mismatching supply and demand, the POS system introduced by Seven-Eleven in 1982 could help. In 2012, it became more advanced and it included “graphic order terminal”, “scanner terminal”, “store computer” and “POS register”. For example, “scanner terminal” can read the bar code, record the inventory and examine the inventory in stores. It can check the order placed previously and it truck drivers need not wait for the checking of delivery. Also, the product will be received at a suitable time. It saved time and simplify the process. By this system, Seven-Eleven can have a better use of inventory and can match the customer demand. Last, it can increase the responsiveness and gain economies of