• International University College Of Technology Twintech

• FBF 4153

 1. Case study for group discussion – Supply Chain Management The term “clicks-or-bricks” refers to a business model in which a company has either an online (clicks) or an offline (bricks) presence. Many companies have both. Sometimes that business model is referred to as “clicks-and-mortar” or “clicks-and-bricks.” In one version, a chain store may allow a customer to order goods online and pick them up at a local store. In another version, large items such as appliances or furniture may be viewed at a local store and then ordered electronically for home delivery. In both instances, the “bricks” portion necessitates a location decision. Even companies that are seemingly pure “clicks,” selling electronic products such as computers, still have warehousing and delivery facilities behind businesses that trade in material goods. Again, location decisions are necessary. The choice of which business model to use requires taking into account the costs of having a physical presence and what the balance between the two should be. Of course, customer preferences and shopping patterns are important. For example, some reasons people shop online include ease of price comparison, convenience, availability of hard-to-find items, research recommendations, and elimination of the need to travel. Reasons for offline shopping include immediate possession of an item, ease of returns, the security risks of online shopping, the need to use a credit card, the burden of logistics for returns, and ability to “kick the tires” (e.g., try on clothing or footwear, judge quality). Questions 1. Retail outlets that do not have an Internet presence often complain that consumers come in to “kick the tires” but then buy online from a competitor. Can you suggest some ways outlets can overcome that? 2 . Some customers of Internet businesses can avoid paying state sales taxes on purchases if the Internet businesses don’t have a physical presence in their state. However, more states are enacting laws to collect taxes. What impact might this have on the clicks, bricks, or both choices? Case study 2 - Scheduling Robert L. Crandall Former CEO—American Airlines B efore takeoff and after landing, you’ve probably noticed lots of people and various types of vehicles and equipment busily moving around on the ground outside with no apparent game plan, particularly at larger