Eliminate the ill-effects of forward buying, Marketing 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

Explain in details the elements of marketing mix, Question 1: (a) How ...

Question 1: (a) How does the marketing mix help to ensure that marketing effort is effective? (b) Explain in details the elements of marketing mix. Question 2: (i)

Differance between low-context and high-context cultures, Questions ...

Questions Explain how an overseas nation's level of economic infrastructure can influence an international marketer's decision as to the viability of marketing to that count

Environmental Apprisal, Why is environmental appraisal important for an org...

Why is environmental appraisal important for an organization

Assignment, explain the various approaches that are followed by FMCG compan...

explain the various approaches that are followed by FMCG companies in test marketing

Explain aid of a market model , Read the article entitled 'Easter egg price...

Read the article entitled 'Easter egg prices rise by around 5 per cent over last year' and answer questions 1, 2 and 3. Easter egg prices rise by around 5 per cent over last year C

Methods\devices of sales promotion, Methods\Devices of sales promotion: th...

Methods\Devices of sales promotion: the various sales promotion devices can be classified in three ways as shown in figure below: 1. consumer promotion: sales promotion direc

Match supply with demand in a profitable manner, Question: By the early 70'...

Question: By the early 70's you realised the market for toys in the US is about to change. What strategies would you recommend for the future (next 10 years) in terms of new produc

Ethical aspects of advertising - moral degradation, Q. Ethical aspects of a...

Q. Ethical aspects of advertising - Moral Degradation? Moral Degradation: - Giving sexual-appeal has turn into very common practice for gaining attention of viewer. It is extre

Math, Can you help me with my math?

Can you help me with my math?

Write Your Message!

Captcha
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