determine amount of safety stock for company, Marketing Management

Assignment Help:

Forester's Country Markets is a well-known grocery chain based in a large Midwestern city.  At one of Forester's distribution warehouses a key problem has been proper stocking of salmon for sale in the meat/seafood departments of several Forester's stores.  To better understand this problem the buyer has assembled data on weekly demand (at the warehouse level in pounds) for salmon over the past 40 weeks.  That data is given in the table below.

756_table.png

 The salmon is delivered to the distribution warehouse by refrigerated truck and arrives from the vendor frozen in 50-pound boxes.  It's held frozen at the warehouse and sent to retail stores as needed where it's thawed, processed into different cuts or used in-store to make salmon mousse or stuffed with a crab meat mixture for sale as a ready-to-cook entrée.  Ordering costs are high owing mostly to the cost of transporting the frozen product.  Placing an order with the vendor incurs a fixed $1000 charge, and the vendor faithfully requires one week to deliver an order of salmon.  Though the amount is difficult to estimate accurately, Forester's assigns a $85 annual cost for holding a 50-pound box of frozen salmon at the warehouse for one year.

a. Determine amount of safety stock in boxes of salmon needed at the distribution warehouse to support a 99% service level.

b. If EOQ is used to set the size of orders placed with the vendors how often (on average) will orders be placed?


Related Discussions:- determine amount of safety stock for company

Define the strategies for product positioning, Define the Strategies for Pr...

Define the Strategies for Product Positioning. Product positioning is attained through a variety of marketing strategies and programs within product design, distribution and pr

Determine in brief about marketing communications, Determine in brief about...

Determine in brief about Marketing communications Marketing communications are a management process through which an organisation engages with its numerous audiences. By under

Describe what are reference groups, Question: (a) You are the marketi...

Question: (a) You are the marketing vice-president of a large soft drink company. Your company's agency is in the process of negotiating a contract to employ a superstar fema

What is the focal point of marketing, What is the focal point of marketing ...

What is the focal point of marketing with building and delivering customer value and satisfaction? Focal point of marketing with building and delivering customer value and sati

Question, Discuss about the natural environment?

Discuss about the natural environment?

Differentiate between speculation and arbitraging, QUESTION a) Using...

QUESTION a) Using illustrative and numerical examples, differentiate between speculation and arbitraging in the context of foreign exchange market. b) One year borrowing

Examples of unfair trade practices, Q. Examples of Unfair Trade Practices? ...

Q. Examples of Unfair Trade Practices? (i) Advertisement concerning weight-loss-claims of any medicine without proper test.  (ii) Using the words 'Government Supported', 'Go

Why is sales promotion growing, Question 1: (a) What is a communication...

Question 1: (a) What is a communication brief (or a creative brief), and how is it typically outlined? (b) Why is an IMC campaign difficult to evaluate? (c) Explain how

Explain about the promotion strategies, Explain about the Promotion Strateg...

Explain about the Promotion Strategies. Promotion Strategies: The promotion strategies of a global marketing organization comprise advertising, promotion, sales, publicit

What is lead generation in personal selling process, What is lead generatio...

What is lead generation in personal selling process? Lead generation: Identification of prospects is initial step in personal selling process. Organization produces the l

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd