Supply Chain Management - Sydney - Case Study Example

Supply chain Management Introduction Sydney is the entryway to Australia, one of the international most economically flexible, politically established and internationally competitive commercial locations. Sydney has a population of 4.52 million, a ground-breaking culture and skilled labour force that is satisfactorily educated, industrious and multilingual of English, Irish, Scottish, and some Chinese (Industry & Investment NSW 2011). It has served as a financial focal point for Australia and the Asia Pacific, Sydney has an industrial, production and manufacturing services labour force half the volume of London's and approaching substantial population of New York's. Sydney is endowed with the reserve to cutting edge financial and manufacturers of highly developed commodities from medical devices to defence and aerospace (Armstrong 2001, p. 58). Sydney home companies are now organizing this expertise all over the world (Industry & Investment NSW 2011). The city gives enough provisions for more cost competitive large hypermarket store location as compared to other major commercial centres and a conducive and efficient regulatory system. Sydney is a hub for highly developed infrastructure, highly skilled film, social amenities, digital simulations, television and more creative businesses (Makridakis et al. 1998). The city is the capital of Australia's most important business State, New South Wales, endowed with an economy that is generously proportioned than that of Hong Kong SAR, Malaysia or Singapore and accounts for close to one third of Australia's Gross Domestic Product (Tovey & Munro 2010). New South Wales is an important manufacturer of near to the ground cost of mineral resources and a major international supplier of coal which guarantees our new store of large supply of money in the market (Sasic Kaligasidis, A et al 2006). Demographic The internal part of Sydney is the for the most part densely populated city in Australia with 4,025 residents per square kilometre (10,429 /sq ml) (Australian Bureau of Statistics 2008). The average age of Sydney population is 35. According to age, 13% of the residents are beyond 66 years old. In educational level, 15.4% of the population boast of educational attainment equivalent to beyond a bachelor’s degree (Australian Bureau of Statistics 2008). During the year 2006 census, 65% of the inhabitants recognized themselves as Christians, 3.9% of the population identified to be Muslims, 3.6% suggested to be Buddhists, 1.6% were Hindus, 1% were Jews and 0.5 were Bahai while 24.59% had no religion or were indecisive of which religion they really belong to. This data proves to us that the diversity of Sydney population will effectively fit to our diverse products and services with guaranteed majority of the population being within 35 years confirms of a high degree of spending population (Prentice Hall India Pvt. 2004). Analysis Capital budgeting calls for dedication of substantial funds in present business in the hope of long term returns on investments (Fawcett et al 2007 p. 243). The realised analysis helps in budgeting to determine the cost of facilities, and operating costs such as labour and transportation in order to arrive at a financially sound decision to invest or avoid. In order to prove of the productivity of the Sydney Hypermarket Store we shall use the data to estimate, project and forecast our expectations so as to establishment of future expectations and subsequent decisions in regard to choice of the location (Heizer & Render 2005, p. 278). After assessing the sales of various Hypermarkets like Woolworth Limited, Coles Supermarket and Sydney Hypermarkets we were able to come up with the following average data that lead to our projections. Size of the hypermarket was an average of a number of hypermarkets at Sydney The following data represents the both year and number of population sales. Sam's Choice brand Year Population Sales (in billions) 2003 3,890,000 $200 sales 2004 3,900,000 $216 sales 2006 3,899,000 $237 n sales 2007 4,100,000 $2 35 sales 2008 4,219,000 $248 sales 2010 4,300, 000 $252 sales Using the above sales over the years the sales would be determined as follows Quantitative: Sales regressed on population (Fawcett et al. 2007 p. 213) Summary: Regression Statistics Multiple R = 0.852 R Square = 0.673 Adjusted R square = 0.6394 Read More