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
Problem 1: Describe the formulation of Sales organization. Explanation of sales Organisation Step 1 - Sales Strategy Step 2 - Marketing Strategy Step 3 - Sale

What is Psychographic or Psychological Segmentation? Psychographic/Psychological Segmentation: A Psychographic or Psychological characteristic taken as to inner character

What is Niche Marketing? Niche Marketing: This Marketing is sometimes also termed as micromarketing. Marketers generally identify niche through dividing a segment within

Q. Give the distinguishing features of an consumer?  Ans.: A Broad sketch of consumer can be drawn on the basis of following issue:-   Demographic that includes size of

Question: The internet platform is the new normal in the life of businesses. For ANY organization of your choice, you are required to write a memo, addressed to your Marketi

Read the journal article Lafferty, B. A., & Hult, G. T. M. (2001) ‘A synthesis of contemporary market orientation perspectives’, European Journal of Marketing, 35 (1/2), pp. 92–109

What are the various approaches for selecting target markets? Once a firm understand its markets and the suitable bases for segmenting such markets, this should choose an appro

Define the term total quality management. TQM is stands for total quality management: In a strategic context, QM is most accurately categorized as a tactic for carrying o

Define the marketing communications strategies Currently numerous definitions refer to an integrated perspective. This view has gathered momentum over the last 10 years and is

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