Scenario 9.9
"Gollee those cats sure go through a lot of food," Geoff exclaimed
as he saw the shopping list pad that had been pre-printed with the
words "cat food" at the top. He pondered a different approach to
shopping for the furry little darlings, reviewed his shopping
records, and discovered the following. The price of cat food has
held steady at 89 cents per can. Despite feigning indifference,
each of the seven cats nibbles their way through an average of one
can per day, three hundred sixty five days a year. The price of
gasoline has held constant at $3.50 per gallon and his pickup uses
a gallon each way to the cat food store. The cost to hold a can of
cat food is 10% of the unit price.
Using the information in Scenario 9.9 determine the economic order
quantity for cat food.
448 cans |
||
634 cans |
||
239 cans |
||
169 cans |
Scenario 9.9 "Gollee those cats sure go through a lot of food," Geoff exclaimed as he...
SYNOPSIS The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or to await results from the product's launch in the United States. Key strategic decisions include choosing the target market to focus on and determining the value proposition to emphasize. Important questions are also raised in regard to how the new product should be branded, the flavors to offer, whether Kraft should use traditional distribution channels or...