Why would a firm want to offer pricing promotions in its peak-demand periods?
Answer to relevant QuestionsWhy would a firm want to offer pricing promotions during its low-demand periods? What factors lead to a batching of orders within a supply chain? How does this affect coordination? What actions can minimize large batches and improve coordination? As demand at the supermarket chain grows, how would you expect the cycle inventory measured in days of inventory to change? Explain. Consider a firm like Zara that has developed production capabilities with very short replenishment lead times. Do you think this capability is more valuable for its online operations or its store operations? Why? In the 1980s, paint was sold by color and size in paint retail stores. Today paint is mixed at the paint store according to the color desired. Discuss what, if any, impact this change has on safety inventories in the supply ...
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