Concept explainers
Case summary:
To make sales, goods are needed by the retailers. The biggest asset is the retailer’s inventory for the retailers. As there is no enough stock of goods, that may result in low sales and carrying large inventory increases the costs and decreases the margin. And these two situations reduce the profit.
The efficiency of the reseller’s inventory management is stock-turn rate (Inventory turnover rate for producers). The key to succeed in the retailing business is realizing a heavy quantity of sales on a small inventory as probable while maintaining enough stock to meet the demands of the customer.
Stock turnover is also known as inventory turnover it is rate or ratio that shows the number of times the company has sold and replaced stock in a particular period.
To determine: The stock turn rate of a retailer.
Want to see the full answer?
Check out a sample textbook solutionChapter 13 Solutions
Principles of Marketing (16th Edition)
- How does shortage and overage in inventory affect the profitability of the business organizationarrow_forwardIs a direct sale supply chain without retail locations often less costly than a retail-based supply chain?arrow_forwardCustomer purchases using credit cards are a significant source of revenue for many retailers. From the standpoint of a retailer, briefly discuss some advantages and disadvantages of a retail store having its own credit card as opposed to accepting one of the national credit cards (e.g., Visa, MasterCard).arrow_forward
- In general, wholesalers can more efficiently perform the following functions except: Group of answer choices Bulk breaking Warehousing Store atmospherics Obsolescence risk bearingarrow_forwardPhysical distribution firms include banks, credit companies, insurance companies, and other businesses that help insure against the risks associated with the buying and selling of goods. Select one: True Falsearrow_forwardJust Answer the Number 2! Here is the answer for the number 1. Retailing is the process of part of the supply chain management in which a retailer deals or interacts directly with the customers. In retailing there can be a brick and mortar store or an online store through which the products and services can be offered to the customers. Retailing business has some major benefits which are as follows - Convenience for customers in terms of time, place, stocks, etc. Encourages impulsive purchases More secure than online shopping Greater sales potential Promotes competitive environment Deciding retail prices A retailer such as a grocer feels entitled to decide on the retail price of the products he sells rather than obey a supplier's SRPS as a retailer bears expenses and efforts in the form of capital, manpower, time and energy which sometimes is not justified in the margin given by the company or in the SRPS. A retailer is the last chain in supply management and he has a…arrow_forward
- a firm acquires distributors in an attempt to become more efficient and effective in supplying products to the retailers. This avenue of growth is referred broadly asarrow_forwardYou are looking to buy a laptop on a budget that requires you to service and repair the laptop yourself, and you want to save money by not purchasing an extended service agreement beyond the first year. To limit your search, what should you consider when choosing manufacturers? Which manufacturers would you choose and why?arrow_forwardJust ANswer the Number 3! Here is the answer for the number 1. Retailing is the process of part of the supply chain management in which a retailer deals or interacts directly with the customers. In retailing there can be a brick and mortar store or an online store through which the products and services can be offered to the customers. Retailing business has some major benefits which are as follows - Convenience for customers in terms of time, place, stocks, etc. Encourages impulsive purchases More secure than online shopping Greater sales potential Promotes competitive environment Deciding retail prices A retailer such as a grocer feels entitled to decide on the retail price of the products he sells rather than obey a supplier's SRPS as a retailer bears expenses and efforts in the form of capital, manpower, time and energy which sometimes is not justified in the margin given by the company or in the SRPS. A retailer is the last chain in supply management and he has a…arrow_forward
- Search on the internet for a well-known company that applies Omni-Channel in its sale and marketing strategy and explain how Omni-Channel helps this company to grow and attract more customer. Discuss the effect of using Omni-Channel selling model on warehousing and distribution operations. You need also to mention the technologies that are used by the company for applying Omni-Channel strategy?arrow_forwardYou wish to view all the bills received from a vendor and all payments to that vendor. How would you use QuickBooks Online to obtain the required information?arrow_forwardOne of the drawbacks of online retailing is the lack of security on the Web for financial transactions. ( a) True b) Falsearrow_forward