Pompeii Brand

Description

A start-up that sells barely 5 million euros worth of mid- to high-end sneakers a year (mainly in Spain) and must expand in Europe considers how to organize its structure of suppliers to improve its productive efficiency without falling victim to the cost of excess inventories. Part of the production comes from two suppliers in Spain and the rest from one in China. The company is also considering starting to work with a new supplier in Turkey. Students must consider which supplier is the most suitable to supply seasonal products (sold for a single six-month season) and products that are sold for a number of seasons.

Learning Objective

The case serves to illustrate how to make good decisions when selecting suppliers, based on uncertain demand and the lead time of each supplier.

Keywords

Operations Purchasing Retailing shoe Sourcing Supply Chain