Sock-um has an annual contractual obligation with its manufacturer to receive 500 cases weekly, and breaking...
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Sock-um has an annual contractual obligation with its manufacturer to receive 500 cases weekly, and breaking the contract would cost them $8000. Once inventory has reached 500 cases, Sock- um will run out of space. Currently, additional shelf space for 500 cases is $1000. A pair of socks costs $1 to manufacturer, and each pair sells for $4. There are 100 pair of socks in a case of socks. Sock-um has the possibility of expanding its reach to midwestern states by providing up to 20 cases per day. To do this, they will incur a one-time cost of $6000. Provide a marketing recommendation to Sock-um regarding the inventory constraints, contractual obligations, and sale opportunities in the Midwest. Sock-um has an annual contractual obligation with its manufacturer to receive 500 cases weekly, and breaking the contract would cost them $8000. Once inventory has reached 500 cases, Sock- um will run out of space. Currently, additional shelf space for 500 cases is $1000. A pair of socks costs $1 to manufacturer, and each pair sells for $4. There are 100 pair of socks in a case of socks. Sock-um has the possibility of expanding its reach to midwestern states by providing up to 20 cases per day. To do this, they will incur a one-time cost of $6000. Provide a marketing recommendation to Sock-um regarding the inventory constraints, contractual obligations, and sale opportunities in the Midwest.
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Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date:
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