chase demand strategy – OM in the News

Holiday Shipping Capacity Is Ahead of Demand

Shipping companies including the U.S. Postal Service, FedEx, and United Parcel Service will have enough capacity to achieve on-time deliveries this holiday season.

Consumers were enticed to shop early to take advantage of early holiday sales, shop more in stores, and moderate spending to counter inflation. As a result, shipping volume was reduced, and shipments were spread over a longer period.

Nevertheless, shipping companies are maintaining a buffer of excess capacity of 10 million to 20 million parcels each day to meet […]

By Anita Lee-Post, Ph.D.|2022-12-12T08:57:47+00:00December 12, 2022|Tags: capacity strategies, chase demand strategy, scheduling, seasonality, work force scheduling|

Target’s Seasonal Aggregate Planning

Target is responding to the nationwide labor shortage with a two-pronged approach in aggregate planning for its retail services.

To prepare for a surge of demand during the holiday season, in addition to hiring new employees, Target is allowing its current employees to work extra hours or shifts. In addition, its employees can choose times or swap hours with other employees.

Video Spotlight:

Target planning to hire more than 100,000 seasonal employees (Sep 22, 2022, KENS 5)

By Anita Lee-Post, Ph.D.|2022-10-24T21:21:18+00:00October 24, 2022|Tags: aggregate planning, capacity planning, chase demand strategy, sales and operations planning, service operations|

GXO Provides Logistics For Leading Retailers

Saks outsourced its logistics to GXO fulfillment center in Middletown, Pennsylvania to ship directly to customers nationwide.

This outsourcing move allowed Saks to meet surging e-commerce demand as the 2021 holiday season approached. The use of GXO’s collaborative robots and shared-space distribution network reduced transit times, freight costs, and supply chain congestion.

Most recently GXO announced it will handle warehouse operations for Zooplus, Europe’s leading online retailer for pet food and accessories.

Video Spotlight:

GXO: Logistics at Full […]

By Anita Lee-Post, Ph.D.|2022-02-04T01:46:14+00:00February 3, 2022|Tags: aggregate planning, capacity, chase demand strategy, logistics, order fulfillment, outsourcing, sales and operations planning|

Tupperware Faces the Bullwhip Effect

The demand for companies like Tupperware has risen and fallen with the peaks of the pandemic.

Early in the pandemic, demand for plastic food storage containers increased, leaving shelves empty. As restrictions ease, fewer people eat in, leaving Tupperware with excess inventory. Besides taking downtime at selected factories, Tupperware is working to add more omnichannel options, to sell through its inventory backlog.

Shortages of raw material, increased raw material prices, and the unpredictable nature of pandemic-related restrictions, are factors which have made […]

By Anita Lee-Post, Ph.D.|2022-01-25T17:04:55+00:00January 25, 2022|Tags: aggregate planning, backlog, bullwhip effect, chase demand strategy, forecasting, pandemic, shortage, supply chain management|