determine amount of safety stock for company, Marketing Management

Assignment Help:

Forester's Country Markets is a well-known grocery chain based in a large Midwestern city.  At one of Forester's distribution warehouses a key problem has been proper stocking of salmon for sale in the meat/seafood departments of several Forester's stores.  To better understand this problem the buyer has assembled data on weekly demand (at the warehouse level in pounds) for salmon over the past 40 weeks.  That data is given in the table below.

756_table.png

 The salmon is delivered to the distribution warehouse by refrigerated truck and arrives from the vendor frozen in 50-pound boxes.  It's held frozen at the warehouse and sent to retail stores as needed where it's thawed, processed into different cuts or used in-store to make salmon mousse or stuffed with a crab meat mixture for sale as a ready-to-cook entrée.  Ordering costs are high owing mostly to the cost of transporting the frozen product.  Placing an order with the vendor incurs a fixed $1000 charge, and the vendor faithfully requires one week to deliver an order of salmon.  Though the amount is difficult to estimate accurately, Forester's assigns a $85 annual cost for holding a 50-pound box of frozen salmon at the warehouse for one year.

a. Determine amount of safety stock in boxes of salmon needed at the distribution warehouse to support a 99% service level.

b. If EOQ is used to set the size of orders placed with the vendors how often (on average) will orders be placed?


Related Discussions:- determine amount of safety stock for company

Astronomy: star mapping, Two nights ago, an astronomer took a picture of a ...

Two nights ago, an astronomer took a picture of a small portion of the sky containing 10,000 stars. Last night, the astronomer took a picture of the same portion of sky (containi

Assignmet, Give a success story of marketing a goods in which a supplier ha...

Give a success story of marketing a goods in which a supplier has been dependable.

What is sales research in scope of marketing research, What is Sales Resear...

What is Sales Research in scope of Marketing Research? Sales Research: Sales research comprises decision concerning selection of store channels, sales; territories force

Explain benefits of undertaking market segmentation, Question: a) The ...

Question: a) The consumer electronics firm for which you work is about to launch a new model of mobile telephone (cell phone and hand phone). This will be a very basic model o

Marketing department organization, Marketing department organization: ...

Marketing department organization: The company must build a marketing department that can carry out marketing strategies and plans. If the company is very small, one person

Importance of the marketing in a seller''s or buyer''s market, Importance o...

Importance of the marketing in a Seller's or Buyer's market : A seller's market is one in which the demand for goods and in the services exceeds to the supply. In such a situati

Fruit store, write an algorithm to calculate fruit for a fruit store for ex...

write an algorithm to calculate fruit for a fruit store for example apple = $1.00 and orange $2.00

Sales and Marketing, Demonstrate your understanding of the principles of ma...

Demonstrate your understanding of the principles of marketing by illustrating the motivation behind energy drink consumers.

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