Eliminate the ill-effects of forward buying, Marketi, Supply Chain Management

Eliminate the ill-effects of forward buying, Marketi, Supply Chain Management

Assignment Help:

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.

Related Discussions:- Eliminate the ill-effects of forward buying, Marketi

Case Study: TehJava, I have a case study about Tehjava, which is a Tea busi...

I have a case study about Tehjava, which is a Tea business in indonesia. I need to know what will be the price for 1500words and include relevant diagrams and references.

Supply chain and sourcing management, The purpose of this project is to cri...

The purpose of this project is to critically analyze one major aspect of the supply chain of a specific company, preferably your own company. You may choose to examine: Upst

Supply chain quality improvement, Supply Chain Quality Improvement Lean...

Supply Chain Quality Improvement Lean is a journey of continuous improvement. Suppliers must often be provided with technical assistance which leads to co operation. At

Reck and Long model, Ask question Select an organization in any market sect...

Ask question Select an organization in any market sector. Discuss, within the context of the organization, the growth and development of supply chain management over the years. Stu

Purchase, topics of studies

topics of studies

What are the benefits of outsourcing logistical activities, What are the be...

What are the benefits of outsourcing Logistical Activities? a. Focus on core competencies b. Operational flexibility c. Geographical Coverage: d. Use of best methods and experi

Briefly discuss modern cost accounting system, Question 1 Explain Activity...

Question 1 Explain Activity Based Costing with examples Question 2 Before implementing the cost management strategy, an organisation needs to perform the certain tasks. Discu

Design the internal operations of the depot, Supreme is a major supermarket...

Supreme is a major supermarket chain in Mauritius, with one central distribution depot. It is sited at the Upper Plaines Wilhems and handles all the normal range of products such a

Show the cpfr model and its benefits, Question 1: Describe in detail th...

Question 1: Describe in detail the management processes in the SCOR model. Diagram and Definition of each process Ambit, Main aspects and functions of SCOR model

Financial accounting., what is the meaning of ledger account and its uses?

what is the meaning of ledger account and its uses?

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

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