Question: Kanga Computing is a computer hardware company that sells devices for the residential market. The salespersons work for a monthly salary that is supplemented by
Kanga Computing is a computer hardware company that sells devices for the residential market. The salespersons work for a monthly salary that is supplemented by a monetary incentive if their store location meets monthly sales targets. Each location has the ability, within a given range, to offer sale prices and discounts to customers. Approximately halfway through a sales month, decisions are made regarding what sales and discounts to offer customers in order to make sure that the monthly sales target is met. Which of the following is FALSE about the likely impact of the sales incentives, sale prices, and discounts offered by Kanga Computing store locations?
Kanga Computing is a computer hardware company that sells devices for the residential market. The salespersons work for a monthly salary that is supplemented by a monetary incentive if their store location meets monthly sales targets. Each location has the ability, within a given range, to offer sale prices and discounts to customers. Approximately halfway through a sales month, decisions are made regarding what sales and discounts to offer customers in order to make sure that the monthly sales target is met. Which of the following is FALSE about the likely impact of the sales incentives, sale prices, and discounts offered by Kanga Computing store locations?
Price discounts help stabilize the supply chain and reduce costs along the manufacturing and supply chain function.
Variability in sales may make it harder to fulfill demand, causing stockouts and uncertainty in the supply chain.
Sales tactics introduce variability into the monthly demand, leading to the hockeystick effect.
Demand for Kanga Computing products increases toward the end of the month.
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