Question: a) State the key options from a retailers perspective in a trade promotions (5 marks) b) The demand for the popular Lemon Gatorade flavor as

a) State the key options from a retailers perspective in a trade promotions (5 marks) b) The demand for the popular Lemon Gatorade flavor as sold by a retailer is 140,000 bottles per year, the manufacturers currently charge $2 per bottle and the retailer incurs a holding cost of 20%. The retailer currently orders in lots of 6500 bottles. The manufacturer has offered a discount of $0.12 on each bottle which is to be purchased by the retailer over the next month. Determine: i) The optimal lost size to be purchased during this promotion. The cycle inventory during this promotion The forward buy quantity. The average flow time before the promotion (6 marks) (3 marks) (3 marks) (3 marks) iv)
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