Question: How can a firm use pricing to change demand patterns
How can a firm use pricing to change demand patterns?
Answer to relevant QuestionsWhy would a firm want to offer pricing promotions in its peak-demand periods? What problems result if each stage of a supply chain views its demand as the orders placed by the downstream stage? How should firms within a supply chain communicate to facilitate coordination? Discuss how various costs for the supermarket change as it decreases the lot size ordered from Proctor & Gamble. What is the role of safety inventory in the supply chain? Why is Amazon able to provide a large variety of books and music with less safety inventory than a bookstore chain selling through retail stores?
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