The supply and demand of micro-matching using rapid replenishment assumes that each store

repeats the same demand pattern every day.

Risk of delayed replenishment:

An unexpected group of customers come to the store and buy everything. The types of products
that we sell on a daily basis hinder our regular customers. During such an event, the store is
likely to be out of stock and customers may visit and purchase the next Seven-Eleven site below
the block. Part of this demand can shift permanently and cause regional ripples.

Risk of shipping delays:

Another possible problem will arise from shipping delays. Delivery is scheduled during off-peak
hours, but disruption of traffic can result in lower service levels for the next wave of demand and
higher costs for in-store transportation and receipt.

High Reliance on Information Systems:

Seven-Eleven's success is due to the entire information system installed in stores and linked to
suppliers, distributors and headquarters. The hardware system included a graphic order terminal,
a scanner terminal, a store computer linked to an ISDN network, and a POS register. Therefore,
11 is heavily dependent on its information system and its supply chain is in line with demand
through this technology. Relying on information technology, if a system fails, it will be the main
failure.

Sensitive regular ties:

The process from ordering a product to selling it needs to be accurate and timely. Seven-Eleven
faces many challenges if there is interference in any part of the process. Irregularities and
disruptions that occur at any point in the system make responsive supply chain management even
more difficult.

Facility location:
Seven-Eleven places its stores in “clusters” that are supported by a single distribution center.

Inventory management:
They have a dedicated manufacturing plant for producing fast food and categorize their
inventories according to four separate categories to assist in transportation. Although related to
information systems, we use graphic ordering terminals to manage inventory and scanner
terminals to receive inventory. Their POS registers also track inventory at a very detailed level. It
also manages deliveries according to time-of-day demand (eg, dinner items delivered just before
dinner time).

Transportation and distribution:

By taking advantage of clustering stores around DC, Seven-Eleven can provide stores with
efficient and responsive delivery. It uses a "combined delivery system" where a single
temperature controlled truck delivers one category of food to multiple stores. It also delivers
during off-peak hours (although the meaning of "off-peak" is undefined). In addition, the
delivery time can be shortened by using a scanner terminal. DC does not have inventory, but it is
actually a cross-docking facility.

Information:
The information is key to each of the above drivers. Information is used to manage inventory and
coordinate deliveries – from manufacturing to DC to the retail store. The ISDN system consists
of four major components: graphic order terminal, scanner terminal, store computer, and POS
register. The system uses a graphic order terminal to not only track and analyze POS data and
place orders with vendors and the DC, but is also used to determine when to convert shelf space
from slow moving to fast moving items. Scanner terminals improve the efficiency of the delivery
process. Store computers linked to the ISDN network communicate between different input
sources to track inventory, sales, orders, and more. Finally, the POS register holds up-to-date
information about customer sales and demographics (gender, age). In summary, information
systems are used to "drive a driver" and put together all the information needed to manage
facilities, transportation, manufacturing, and distribution.