1-Shoppe Production

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Domestic vs International Production

D: Order product contents from domestic vendors
D': Order product contents from international vendors
B: Ensure high level of responsiveness
C: Order contents at the lowest possible price
A: Create a balance between responsiveness and efficiency
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In order to Create a balance between responsiveness and efficiency I must Ensure high level of responsiveness and in order to Ensure high level of responsiveness I must Order product contents from domestic vendors. But, in order to Create a balance between responsiveness and efficiency I must also Order contents at the lowest possible price and in order to Order contents at the lowest possible price I must Order product contents from international vendors. I can't both Order product contents from domestic vendors and Order product contents from international vendors.
RelationAssumption(s)Injection(s)
D-D'A product cannot be ordered from both a domestic and international vendor.
B-DDomestic orders are more responsive to changes in customer demand based on their local proximity to the targeted market.Domestic orders can also have a long lead time, which would defeat the purpose of ordering domestically. But since 1-Shoppe support the Buy American Act, we should still order domestically regardless of cost.
C-D'International vendors have the lowest prices, even once shipping is accounted for.International shipping would be more efficient only if a certain quantity of product is ordered at once, in bulk. This would also raise inventory costs.
A-BResponsiveness is a critical factor in good customer service, as is price.Responsiveness is the only way to keep up with a changing market.
A-CPaying as little as possible for products is vital for high efficiency.Ordering in bulk if inventory costs are low may provide a cost effective and efficient solution.