Eliminate the ill-effects of forward buying, Marketing Management

Saki, a local bar, consumes Mehboob, a popular non-alcoholic drink, at a steady rate of 10 cases/week. Saki usually buys Mehboob at $6/case, delivered to its door.  However, the supplier is currently offering a promotional price of $5/case.   
 
(a)  If the carrying cost for Mehboob is $0.25/$/year, how many cases should Saki buy to take advantage of this promotion?  Assume that the current promotion may end any day and that the next promotion is unlikely in foreseeable future.   Indicate any other assumption(s) that you make for your analysis.
 
(b) How will your decision in part (a) change in each of the following cases? 
 
i.  If you had reasons to believe that your supplier gives this promotion annually;
 
ii.  If you had reasons to believe that your supplier may give this promotion again sometime between six months to a year from now, equally likely;
 
iii.  To eliminate the ill-effects of forward buying, your supplier allows you to order any quantity you like, but delays the delivery until you actually need it.

Posted Date: 2/18/2013 5:00:27 AM | Location : United States







Related Discussions:- Eliminate the ill-effects of forward buying, Assignment Help, Ask Question on Eliminate the ill-effects of forward buying, Get Answer, Expert's Help, Eliminate the ill-effects of forward buying Discussions

Write discussion on Eliminate the ill-effects of forward buying
Your posts are moderated
Related Questions
Importance of marketing to the firm: Marketing plays an important role for the well being of a firm. This is evident from the following words of the Peter F. Ducker, "Marketing

Marketing strategy development

Question: (a) Explain the purpose of internal marketing. (b) Identify the three levels organizational culture and discuss the importance organizational culture for successf

A firm is intending to operate across a number of markets in the world.you have been hired to help them in finding consistent methods to analyse their cross culture markets.Using r

The problem formulation are: R the set of all mesh routers N number of mesh routers K the maximum

what is the difference between perception and positioning in marketing mix


Affordability Based Pricing  : The affordability based pricing is relevant in regard  of  necessary  commodities,  which  meet  the  basic  requirement  of  all sections of peop

What are the financial intermediaries? Financial intermediaries: Credit companies, banks and other businesses which help finance transactions or cover against the risks

what are the core marketing concepts?