Goodbaby Group: The Upfront Warehouse Decision
(3 pages of text)
Jinrun Li, chief operating officer for Goodbaby Group (Goodbaby), had to make a decision about opening a new store in a high-end mall in Shanghai, China. Goodbaby was going to manage the store for one of its clients, who had its own specifications for the dimensions and product range of the store. However, the floor space available was too small to accommodate the preferred proposal from Goodbaby’s marketing department. Based on a recent pilot project, Li considered adopting a new supply chain structure that would allow for reduced floor space while complying with the client’s specifications. The new supply chain structure involved an upfront warehouse that would increase the speed of store replenishments and act as a buffer between the regional warehouse and the store. Looking at the data, Li wondered if this new structure would be the solution for the proposed new store.
This case can be used in undergraduate- and graduate-level courses on introductory operations management (supply chain module) or supply chain management. After completion of the case and assignment questions, students will be able to
- appreciate the trade-offs involved in designing a distribution system in a supply chain;
- develop a series of performance measurements for a distribution system in a supply chain; and
- make a supply chain–related decision with incomplete information.
China, Large, 2019
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