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

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

Optimal level of Product availability, Abc analysis

Abc analysis

MRP, what are the basic calculations of MRP

what are the basic calculations of MRP

Assigment, This is the guideline for my research project, Please send me yo...

This is the guideline for my research project, Please send me your Quotes against my 4 assignments as per below subjects and attached documents -Company Description in 3,500 wo

Inventory managment, I want to know the flow of Inventory management proces...

I want to know the flow of Inventory management process

Determine type of process flow-operations management , The Fabrication & Ba...

The Fabrication & Baking Industries Ltd (The FBI) The FBI is a specialty manufacturer of fabricated, baked enamel components for the mining industry, located in Newcastle. Large

Reducing and controlling errors of measurement, R educing and controlling ...

R educing and controlling errors of measurement To reduce and control errors for all sources of measurement variation steps can be taken. By applying a numerical connectio

Limit state method, A series of reinforced concrete beams spaced at 5 m cen...

A series of reinforced concrete beams spaced at 5 m centres and spanning 7.5 m support a 175 mm thick reinforced concrete slab as shown in Figure 3. The imposed floor loading is 3

What is decision support system, What is Decision Support System? Explain i...

What is Decision Support System? Explain its structure and its functions. Decision Support System - meaning - Functions of DSS - Components or Structure of DSS - 1. Mode

Mrp systems., mrp

mrp

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