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Sportstuff.com GROUP1:

Case Somesh Ajmera (2202215)

Shubham Antapurkar (2202208)

Srusti Sangeeta Baral (2201189)

Sharad Anuragi (2201170)

Swagat Shovan (2202231)

Shalini (2202196)
SEBNEM BURNAZ* and Y. ILKER TOPCU Istanbul Technical University,
Management Faculty, Macka, Istanbul, Turkey
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Introduction

• SportStuff.com was founded by Sanjay Gupta in 2004 with a mission of supplying parents
with more affordable sports equipment for their children.

• Parents complained about having to discard expensive skates, skis, jackets, and shoes
because children outgrew them rapidly.

• Sanjay’s initial plan was for the company to purchase used equipment and jackets from
families and surplus equipment from manufacturers and retailers and sell these over the
Internet.
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Problem

• The venture capitalists supporting the company were very pleased with the growth in sales
and the resulting increase in revenue. Demand had grown by 80 percent. Sanjay and his
team, could clearly see that costs would grow faster than revenues if demand continued to
grow and the supply chain network was not redesigned.

• They are clear on the facts that if the supply chain in not redesigned the increase in cost over
the demand will be more than the profits
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Questions &
Answers
Upper Lower Open Open Total
Location Northwest Southwest Northeast Southeast
Midwest Midwest Small WH Large WH WH
Q.1 What is the cost Sportsstuff.com incurs if all the
warehouses leased are in St Louis? Seattle 0 0 0 0 0 0 0 0 0

Ans-1 Considering only St Louis as the destination with the Denver 0 0 0 0 0 0 0 0 0

total capacity of 40 Lakhs we will be able to meet the
St. Louis 576000 360000 288000 396000 630000 315000 0 1 1
requirement of all the regions with 14.35 Lakhs excess
capacity at St Louis. The total cost arrived is at RS 18.57
Atlanta 0 0 0 0 0 0 0 0 0
Lakhs
Philadelphia 0 0 0 0 0 0 0 0 0
Q.2 What supply chain network configuration do u
recommend for Sportsstuff.com?

Ans-2 Inspite of having multiple options of warehouse Item Cost($)

opening we still get the ST louis option as the optimal
solution Shipping Cost 1994625

Q3. How would u recommend change if transportation cost

Inventory holding cost 898225
were twice more than the actuals? warehouse cost 888000
Shipping Cost recoup 1923750
Ans-3 Given the increase in transportation cost by twice
the existing we need to open the plans in Seattle & Atlanta Total 1857100
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Thank You