SCOR Case Blazing Bikes PDF

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SCOR Modeling Please draw a geographical map and a thread diagram for the supply chain described below. BlazingBikes Inc. is a large German bike manufacturer situated in the beautiful city of Münster. Primarily, BlazingBikes produces bikes for a number of bike retailers which are supplied by three different distribution centers strategically located in Germany: the Waltersdorf distribution center located directly at the intersection of the Autobahn (interstate) A10/A13; the Kamen distribution center at the intersection of A1/A2; and the Speyer distribution center at A6/A5. Moreover, BlazingBikes sells its bikes in an outlet store directly to end-customers. This store and a small factory internal warehouse also supplying the store are directly located on the production site. Generally, 95% of the bikes sold are part of a standard assortment and non-customized. The remaining 5% of bikes are customized bikes specific for a customer. For those bikes, parts like breaks, pedals or rear derailleurs are selected by the customer. As a producer, BlazingBikes does not directly interact with private end-customers except in their outlet store. Instead, customers interact with their bike retailer of choice which in turn orders the bikes from BlazingBikes. Orders from retailers are either sent to the distribution center in case of the standardized assortment – or directly to the plant in case of customized bikes. However, as BlazingBikes still tries to stay true to its roots of being a small bike shop, bikes ordered on-site in the outlet store to “Münsteraners” are an exception, in which a direct interaction with the customers happens. All standard and custom made bikes are sold with a 10% discount there. Parts for the bikes are sourced from two different main suppliers. The bikes frame is sourced from a “no name” manufacturer based in Plzeň, Czech Republic. All additional parts are typically sourced from the well-known cycling component manufacturer Onamshi which has its main production plant in Kunshan, China. Both companies produce – based on demand forecasts – to stock in their internal warehouses In order to balance unforeseen delivery disruptions, BlazingBikes stores a certain amount of parts for the standardized assortment in its factory internal warehouse. Orders for replenishment of these stocks are sent out when the amount stored falls below a certain threshold. In case of the customized assortment, a different strategy is employed. In that case, all parts, including the frame, are ordered from a nearby bike part wholesaler in Bremerhaven when a specific customer order is received. Those parts are delivered just-in-time and used instantly in production. Despite the intensive business partnership between BlazingBikes and the wholesaler, the sourcing process of the wholesaler is unknown to BlazingBikes. Manufactured standardized bikes are first stored in the warehouse at the factory of BlazingBikes, and a transport to any of the regional distribution centers is issued, whenever the inventory level of the standardized bikes in one of these falls beyond a certain predetermined value. Individual bikes are sent out directly to the retailer stores after assembly. Due to the on-site-location of the outlet store, the use of a logistics service provider is not required for deliveries to the store. Here, customer orders of both, standardized and individual bikes are directly transferred to the factory. Standardized bikes are taken from the warehouse attached to the factory when they are not available in the small stock of the outlet store anymore, while individual bikes are first assembled and then brought to the store. The

customer is always promised that he can pick up both kinds of bikes in the outlet store three days after his initial order. In order to detect transport defects, standardized bikes undergo a quality check in the distribution centers whereas customized bikes are checked by the retailers. If a defect is detected, products are returned to the plant in Münster where the defect is either repaired; or if that is not possible, replaced. Replacements happen by either producing a new bike in the case of individualized bikes, or by taking a standardized bike from stock. Distribution of those replaced or repaired bikes is performed by using the normal distribution processes as well. Bikes delivered directly to the outlet store do not follow this repair/replacement process, but are sold in any case, e.g. as collector’s items with a significant rebate.

Geographical Map

Standardized Customized Bike Part Wholesaler Bremerhaven

Suppliers Czech Republic and China

Factory

Distribution Centers

Retailers

Outlet Store...