Advantages of Store:: How The Effectiveness of Pull Relatively To Push May Differ Between NYC Vs LA?

Advantages of Store: 1.

Shopping Convenience

2.

Wide Choice

3.

Liberal Services

4.

Central Location

5.

Large Volume of sales

Disadvantages of Store: 1.

Distance

2.

High Cost of Operation

3.

Higher Prices

4.

Difficult to Establish

5.

Absence of Personal Contact

Advantages of Showrooms: 1.

Provides an Experience. When people go shopping, it's not always for a specific product.

2.

Amount of Returns Decline. Showrooms can also help to decrease the number of returns.

3.

Customer Trust Increases. Gaining customer trust is huge, and putting your products out on physical display is an honest move.

Disadvantages of Showrooms: 1.

The maintenance cost is high compared to the store.

How the effectiveness of Pull relatively to push may differ between NYC vs LA? 1. Based on your calculation, is the pull strategy better than the push strategy for all product types in the flagship stores of NYC and LA? If not, for which product(s) is pull better than push? ANS In NYC Store: Under Hot Smart for the fast selling and experience items pull strategy have a huge savings. Under Hot feature we can see that push strategy is better than pull strategy as saving is negative 12.02%. So for fast selling and inexpensive items push strategy might work better.

Under Cold Smart slow and expensive items the pull strategy can achieve the highest savings. Under Cold feature slow moving and inexpensive items the pull strategy can achieve the highest savings. In LA Store: Under Hot Smart for the fast selling and experience items pull strategy have a huge savings. Under Hot feature we can see that push strategy is better than pull strategy as saving is negative 15.91%. So for fast selling and inexpensive items push strategy might work better. Under Cold Smart slow and expensive items the pull strategy can achieve the highest savings. Under Cold feature slow moving and inexpensive items the pull strategy can achieve the highest savings.

2. Based on your calculation, what are the net savings for the NYC and LA stores if we move from push to pull? ANS In NYC Store: % Savings   ColdSmart ColdFeature HotSmart HotFeature % Savings   ColdSmart

  Pull vs. push 88.40% 65.50% 53.86% -12.02%

  Pull vs. push 86.70%

In LA Store:

ColdFeature HotSmart HotFeature

37.56% 42.51% -15.91%

So in the both stores we can see that pull can achieve a higher savings that a push strategy.

3. Based on your calculation, In which region (NYC vs LA), pull may generate a greater saving relative to push? By comparing both the stores we can conclude that pull generates a greater savings than push. In NYC Store: Push HotSmart

Inventory cost

Shipping cost Picking/Packing cost 431.63389 $4,834 8

HotFeature

1397.33333 3

ColdSmart ColdFeature

626.666666 7

Total

359.14576 3

18.8847458 15.8644068

388.8

6.192 23.422222 2

1.158 1.87592593

$1,47,970

$17,029

$771 $1,65,770

Pull HotSmart HotFeature ColdSmart ColdFeature

Inventory cost

Shipping cost Picking/Packing cost 2158.1694 100 9 1795.7288 40 1 40 16

30.96 117.11111 1

179.847458 149.644068 2.58 9.75925926

Total

$3,776

$85,147 % saving

$7,096 $96,019 42.08%

In LA Store: Push HotSmart HotFeature ColdSmart ColdFeature Total

Inventory cost

Shipping cost Picking/Packing cost 326.88813 $2,913 6

14.520339

770.4242424

202.90169 5

9.35423729

492.6315789

4.8558139 5

1.10232558

139.52

15.04

1.52666667

$88,413

$11,488

$540 $1,00,440

Pull HotSmart HotFeature ColdSmart ColdFeature Total

Inventory cost

Shipping cost Picking/Packing cost 1634.4406 100 8 1014.5084 40 7 24.279069 40 8

16 $3,776

75.2 $57,439 % saving

136.20339 84.5423729 2.02325581 6.26666667 $4,787 $66,002 34.29%