Forecast has resulted in excess inventory sitting idle

Assignment Help Business Economics
Reference no: EM131002318

An overoptimistic sales forecast has resulted in excess inventory sitting idle at a company's warehouse. As the manager of the company, your job is to troubleshoot the problem and get results. Your instinctive reaction is to open up new channels of distribution. Discuss (at least) five critical questions you should ask yourself before going ahead with your plan. Justify your response with logical reasoning.

Reference no: EM131002318

Questions Cloud

Short-run equilibrium of a monopolistically competitive firm : Use the accompanying graph to illustrate the short-run equilibrium of a monopolistically competitive firm. (b) At the equilibrium, what is (i) Price? (ii) Output? (iii) Total profit? (c) Identify the long-run equilibrium of the same firm. (d) In long..
Categories of proprietorships-partnerships : The division of US businesses in the categories of proprietorships, partnerships, and corporations is based on 1) generally accepted accounting principles 2) legal considerations 3) the judgment of the American economic assoc 4) an executive order of..
Manufacturer of mini-doughnut machine markers : Beloit Co. is a manufacturer of mini-doughnut machine markers. Early in 2003 a customer asked Beloit to quote a price for a custom-designed doughnut machine to be delivered by he end of 2003. Once purchased, the customer intends to pace the machine i..
What is the maximum consumption expenditure : Jerry wants to start his own business with $20, 000 in his bank account. Given that the market borrowing and lending rate is 10%, and his expected production function is y2 = 220 * (sqrt of Initial Investment) What is the optimal amount Jerry should ..
Forecast has resulted in excess inventory sitting idle : An overoptimistic sales forecast has resulted in excess inventory sitting idle at a company's warehouse. As the manager of the company, your job is to troubleshoot the problem and get results. Your instinctive reaction is to open up new channels of d..
Events to affect the market equilibrium price : Suppose you are the manager of a California winery. How would you expect the following events to affect the market equilibrium price (up or down) you receive for a bottle of wine? Please state the shift (leftward or rightward) of demand or supply.
Develop a global? mindset : Which of the following methods will NOT help managers develop a global? mindset?
What amount will jennings retained earnings : By what amount will Jennings' retained earnings decline if it now sells the remaining 1 million treasury shares at $67 per share?
Demand for a softback managerial economics text : Demand for a softback managerial economics text is given by Q=20,000-300P. The book is initially priced at $30. Compute the point price elasticity of demand at P= $30. If the objective is to increase total revenue, should the price be increased or de..

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate what way does investment multiplier

Illustrate what way does investment multiplier defend the policy of public workson the part of the state during business depression.

  What is firms total revenue and what is the firms total cost

With current technology, suppose a firm is producing 800 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 5 units of land, 4 units of capital, and 1 unit of entrepre..

  Nature versus nurture-cultural bases for gender differences

To synthesize just means to combine various parts or elements together in order to draw conclusions. In a post of between 150 and 250 words, discuss the following prompt: Consider what your textbook says about "nature versus nurture" (Chapter 3) in r..

  Affect the consumer price index

In October 2011, Apple introduced the iPhone 4S, which had new features, including camera and voice control, but sold at the same price as the previous iPhone model. How did the introduction of the iPhone 4S affect the Consumer Price Index? What fact..

  Major reasons that foreign expatriates

One of the major reasons that foreign expatriates have difficulty doing business in the United States is that they do not understand American slang. A business executive recently gave the authors the following three examples of statements that had no..

  Find equilibrium wage differential between safe and risk job

Suppose, Worker 1 has a reservation price of 41 cents; worker 2s reservation price is 42 cents; worker 3s reservation price is 43 cents, and so on. There are 150 jobs in firms without air purification systems, and this number is fixed. Thus, the dema..

  What do you think the elasticities are in the flower busines

Now that you are an expert on elasticities, what do you think would be the best time of year to raise prices, and why? What do you think the elasticities are in the flower business? Use graphs and hypothetical tables to support your answer.

  Expected value of a random variable is the weighted average

Jamal has a utility function U=(w^1/2) , where W is his wealth in millions of dollars and U is the utility he obtains from that wealth. In the final stage of a game show, the host offers Jamal a choice between (A) $4 Million for sure, or (B) a gamble..

  Analyze the alternatives presented and make a recommendation

While you were visiting London, you purchased a Jaguar for £35,000, payable in three months. You have enough cash at your bank in New York City, which pays 0.35 percent interest per month, compounding monthly, to pay for the car.

  Show how the curves are affected by the license increase

Suppose a certain state increases the license fees that physicians must pay from $500 to $2000 per year. Trace out the impact of the increase in fees an average cost, average variable cost, fixed cost, and marginal cost for physicians operating in th..

  Affect the supply of money-the demand for money

Explain how each of the following developments would affect the supply of money, the demand for money, and the interest rate. Illustrate your answers with diagrams.

  Differences between accounting profit and economic profit

Discuss the differences between accounting profit and economic profit. What does it mean when a company makes zero accounting profit? How about zero economic profit?

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