At the end of 2022, Peter Parker and his management team were busy evaluating the performance of Gadget.com for the year. Total demand had grown by over 2200 percent since the business began in 2013. This growth, however, was a mixed blessing. The venture capitalists supporting the company were very pleased with the growth in sales and the resulting surge in revenue.

Peter and his team, however, could clearly see that costs would increase faster than revenues if demand continued to grow and the supply chain network was not restructured. They decided to analyze the performance of the current network to see how it could be redesigned to best cope with the growth in demand anticipated over the next three years up to 2025.

GADGET.COM

Peter Parker founded Gadget.com in Missouri of the United States in 2013 with a mission of supplying techno-savvy millennials with affordable consumer electronic gadgets. Like any other perishable consumer product, trendy electronic gadgets can become obsolete very quickly. So, if they are too expensive, consumers will be reluctant to purchase them. Parker’s initial plan was for the company to purchase relatively cheap and trendy gadgets with acceptable quality from China and sell them over the Internet. The idea was very well received in the marketplace.