Objective:

The objective of this assignment is to study how retail business manage the supply chain. Retailers must NEVER have out-of-stock situation. Customers who come in but find the product to be sold out, is not only disappointed, but could be irate enough to go to a competitor and forever be that competitor's loyal customer. So not only did you lose the opportunity to make money on that day, but you would lose the "lifetime-value" of that customer. What is the best strategy to use to have the merchandise on hand, but not too much nor too soon and adversely affect the cashflow of the retailers? What are the methods of delivery? When should the retailers have presence everywhere, or selectively?

Part 1: 25 points

• Respond to the following questions with college level critical thinking.
• Total assignment should be about 200 - 250 words.
• Number your responses corresponding to the Question Number, e.g. Q1a, Q1b, etc.

Part 2: 5 points

• Underline at least 5 concepts from the assigned chapter which you used in your responses. Words used in the questions do not apply to the count of 5 concepts.

Questions:

1. At this stage of development should B3 be sourcing hides through wholesalers or direct from tanneries? a. Yes or No? b. Explain your response using critical thinking and concepts introduced in the textbook.
2. What can Key do to put in controls on inventory investments to make sure he is not over invested in inventory? a. Select 1st control method and name it. b. How does this control method work? c. What would this control method prevent? d. Select 2nd control method and name it. e. How does this control method work? f. What would this control method prevent?
3. In order to grow his retail enterprise should Key use franchise marketing channel? What are the advantages and disadvantages? a. Yes or No? b. What is 1st advantage? c. What is 2nd advantage? d. What is 1st disadvantage? e. What is 2nd disadvantage?
4. What do you think would be a reasonable continuing franchise fee to charge the franchisees? Explain. a. State the fee in Percentage of Revenue. b. Explain why this is a reasonable figure using specific factual example using research.
5. Would you consider adding other merchandise line beyond Belt & Boot? If so what would it be and why would you choose to do so? If not, why not. a. Yes or No? b. If yes, what would it be and why. If not, why not?

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