determine amount of safety stock for company, Marketing Management

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?

Posted Date: 2/19/2013 2:15:51 AM | Location : United States







Related Discussions:- determine amount of safety stock for company, Assignment Help, Ask Question on determine amount of safety stock for company, Get Answer, Expert's Help, determine amount of safety stock for company Discussions

Write discussion on determine amount of safety stock for company
Your posts are moderated
Related Questions
What is Place Strategies? Explain about such in details. Place Strategies: Economic, reliable and efficient transportation and distribution of goods and services has play

Importance of the marketing in a Seller's or Buyer's market : A seller's market is one in which the demand for goods and in the services exceeds to the supply. In such a situati

What is the meaning of product concept? Meaning: Product concept means that consumers will favor products which offer the most performance, quality and features and which

Describe the freeze -thaw activity Repeated cycles of freezing and melting of water in rock  called as freeze -thaw activity or frost action widen the cracks and may even split

Question : (a) "America's investors are as busy as they have ever been and its entrepreneurs are seizing on their ideas with the same alacrity as always. Investment in resear

employees going on assignment in another culture need to be aware of their own


The Stock Market The stock market is very close to a perfect competitive market. The price of a stock usually is determined by the market forces of demand and supply of the stock a

considering the concept of product life cycle, where would you put video games in their life cycle