Case study Answer - Seven-Eleven Japan question 2 (华语解释翻译）

Seven-Eleven's supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated with this choice?

Seven-Eleven’s as a company origin from the United States, they are trying to ensure every product’s quality that handle and deliver to their consumer. With the usage of advanced information and distribution technologies, rapid replenishment has become possible and convenient than before. In fact, seven-eleven are able to replenish around 3 times per day. This strategy has highly stimulated and improved the responsiveness of the supply chain of the Seven-eleven, maximizing the accessibility of goods and products, quality, and even product variety. However, the thing has two sides, this strategy also has its risk and disadvantages.

7-11 是一家起源于美国的公司，他们正努力确保每件产品的质量都能处理并交付给他们的消费者。 随着先进的信息和配送技术的使用，快速补货变得比以前变得可能和方便。 事实上，7-11每天能够补充大约3次。 这一战略极大地刺激和提高了7-11供应链的响应能力，最大限度地提高了商品和产品的可及性、质量，甚至产品的多样性。 然而，事情有两个方面，这种策略也有其风险和劣势。

Risk of System
系统风险

Seven-eleven is researching and using the integrated store information system to collect, process, and feedback the point of sales data quickly every day. For example, it would pass through a few hardware systems such as graphic order terminals, scanner terminals, store computers, and so on. The make every common consume such as sales of goods could be recorded in the information system to ensure smoothness of replenishment. However, machine and technology system are having certain bugs and rates of error that could bring to the inaccuracy of information. In fact, the more sophisticated the instrument system, the higher the possibility of error, especially in terms of the system algorithm that writing by the programmer.

7-11每天都在研究和使用综合门店信息系统，快速收集、处理和反馈销售点数据。 例如，它会通过一些硬件系统，如图形订购终端、扫描仪终端、商店计算机等。 使每一个常见的消费如商品的销售都可以记录在信息系统中，以确保补货的顺利进行。 然而，机器和技术系统存在某些可能导致信息不准确的错误和错误率。 事实上，仪器系统越复杂，出错的可能性就越大，尤其是程序员编写的系统算法。

Risk of Information 
资讯风险

Rapid replenishment is highly dependent on the accuracy and completeness of the information. Commonly, information asymmetry is often the biggest problem causing the problem of oversupply and undersupply in the replenishment process. Problems like this are actually not uncommon, especially happen in the rapid replenishment process. In this case, It would probably affect the product quality (freshness) especially edible products, even could lead to the out-of-stock phenomenon, or even increase storage costs. Even more, uncontrollable factors such as natural disasters and man-made calamities will affect the recording of data and lead to more serious issues. In particular, the system algorithms need to classify and calculate the amount of reference data is very large, including user consumption, preference, demand, purchasing power, and other factors.

快速补货高度依赖于信息的准确性和完整性。 通常，信息不对称往往是造成补货过程中供过于求的最大问题。 像这样的问题其实并不少见，尤其是在快速补货的过程中。 在这种情况下，很可能会影响产品质量（新鲜度）尤其是食用产品，甚至可能导致缺货现象，甚至增加存储成本。 更重要的是，自然灾害、人为灾害等不可控因素会影响数据的记录并导致更严重的问题。 特别是系统算法需要分类计算的参考数据量非常大，包括用户消费、偏好、需求、购买力等因素。

Risk of Distribution/logistic
分销/物流风险

Replenishment or the resupply of the goods and product can’t succeed without good logistics and distribution. The management of logistic and distribution is always playing an important role in the supply chain which affect the lead time of goods, quality/ freshness of goods, logistic cost, and other elements. In this case, the seven-eleven are conducted a complex combined distribution system, especially with the temperature control due to the edible products. This would lead to the high cost of transportation and logistics, and the logistic partner would actually bear a high risk due to the shelf life and requirement to maintain the freshness of the food. Even more, the rapid replenishment is created a high workload and pressure on logistics which require more trips and cost of logistics. Not to mention yet there are more other factors might affect the route of logistic such as the traffic, raining, incident and so on which might probably cause a delay in transportation.

没有良好的物流配送，货物和产品的补货或补给就不可能成功。 物流配送管理在供应链中一直扮演着重要的角色，它影响着货物的提前期、货物的质量/新鲜度、物流成本等因素。 在这种情况下，七十一进行了一个复杂的组合配送系统，特别是由于可食用产品的温度控制。 这会导致运输和物流的高昂成本，而物流合作伙伴实际上会因为保质期和保持食品新鲜度的要求而承担高风险。 更重要的是，快速补货给物流带来了高工作量和压力，需要更多的行程和物流成本。 更不用说还有更多其他因素可能会影响物流路线，例如交通，下雨，事故等可能会导致运输延误。

In conclusion, every system could have its advantages and disadvantages which fit a different situation. For seven-eleven, since they have chosen this strategy, they must have their considerations. Moreover, seven-eleven are actually controlling the risk to a certain degree. This is because rapid replenishment only requires resupplying a limited amount each time which avoided the hoarding of goods. In this case, the risk of the loss in terms of goods amount and possibilities could be decreased relatively too.

总之，每个系统都有适合不同情况的优点和缺点。 对于七十一，既然他们选择了这个策略，那肯定是有他们的考虑的。 而且，七十一实际上在一定程度上控制了风险。 这是因为快速补货只需要每次补给有限的数量，避免了囤货。 在这种情况下，货物数量和可能性方面的损失风险也可以相对降低。

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For other questions Answer:

No.	Question
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2	Seven-Eleven's supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated with this choice?
3	What has Seven-Eleven done in its choice of facility location, inventory management, transportation, and information infrastructure to develop capabilities that support its supply chain strategy in Japan?
4	Seven-Eleven does not allow direct store delivery in Japan, with all products flowing through its distribution center. What benefit does Seven-Eleven derive from this policy? When is direct store delivery more appropriate?
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