Logistics

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BMGT 372 - INTRODUCTION TO LOGISTICS AND SUPPLY CHAIN MANAGEMENT

CASE 2 QUESTIONS AND POINT VALUES

ALTERNATIVE DISTRIBUTION FOR SSI

The following questions are intended to guide your analysis, but please be sure to adhere to the strategic and technical guidelines regarding formatting (see the example memo provided for you). The point values for each question are also provided, to make clear how the case will be graded. The case is worth 10 points total, or 10% of the final grade for the course.

1.What are the proposed benefits of the alternative distribution system for the retailers? For SSI? What are the potential drawbacks? (1 point) 2.Using the information provided in Table 2:
a.Determine the total number of retailers who are anticipated to participate in the program for the 6 month trial period. How many are expected to continue after the trial period? (1 point) b.Determine the average retailer’s unit and dollar sales on both a daily and an annual basis. (1 point) 3.Given the annual sales for an average retailer calculated you calculated in #2 and the information provided in Table 3, how many orders does a retailer ordering only large packs place? A retailer ordering only small packs? (1 point) 4.Given the number of orders you determined in #3, determine potential sales for the first year. Assume only 40% of the retailers will achieve 100% sales (call these retailers “high performers”). Twenty percent of retailers will be “medium performers” and will only meet 75% of the estimated sales. The final 40%, the “low performers”, will achieve 50% of the expected sales. a.If 45% of the retailers exclusively order large packs, how many orders are placed during the 6 month trial period? During the 6 months after the trial period? (1 point) b.If 55% of the retailers exclusively order small packs, how many orders are placed during the 6 month trial period? During the 6 months after the trial period? (1 point) 5.Assume retailers pay $205 for a...
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