Use this information for questions that refer to the United Tools case.Terry Harter is marketing manager for United Tools, and Mike O'Reilly is the firm's logistics manager. They work together to make decisions about how to get United's hand and power tools to its customers-a mix of manufacturing plants and final consumers (who buy United tools at a hardware store). United Tools does not own its own transport facilities, and it works with wholesalers to reach its business customers.Together, Harter and O'Reilly try to coordinate transporting, storing, and product-handling activities to minimize cost while still achieving the customer service level their customers and intermediaries want. This usually requires that United keep an inventory of most of its products on hand; but demand for
its products is fairly consistent over time, so inventory is easy to manage.Harter has identified four options for physical distribution systems she could use to reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost for each option-and the distribution service levels that can be achieved-are as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service. Ricotta Tool Co. is willing to settle for a 70 percent customer service -leveleven if that means some products will occasionally be out of -stockif it gets products at a lower price.For its large retail hardware customers (like Home Depot), United regularly ships smaller orders directly to individual stores or in some cases to the retail chain's warehouses. Cross-country shipments usually go by rail, while regional shipments usually go by truck.United's shipments to international markets often rely on containerization. The likely reason for this is that
A. containerization is very useful for small, frequent shipments.
B. the tools are shipped by airfreight.
C. containerization allows a firm to carry less inventory.
D. it makes it easier to move shipments between different transportation modes.
E. All of these are good reasons for relying on containerization.
Answer: D
You might also like to view...
Discuss the significance of accounting.
What will be an ideal response?
The equitable doctrine of ________ obligates a minor to only pay reasonable value for goods or services received
A) emancipation B) restraint of contract C) contract of adhesion D) quasi-contract
Is it possible for a product's life cycle stage to affect its product strategy? In particular, describe how one product in growth and another in maturity might have different product strategies
What will be an ideal response?
Dividing actual demand by the model's forecast yields an index that can be used to adjust for ________ in the data
Fill in the blank(s) with the appropriate word(s).