Case Study Alternative Distribution for SSI
Question 1: Determine the total number of retailers in the program initially as well as after the trail period.
Question 2: Determine what the average retailer will sell on the daily basis as well as annually. Provide sales in terms of unit and dollar amounts.
Question 3: Translate the annual sales for an average retailer into the number of packs that retailer will order per year. Repeat for small pack order. Include the initial order in calculation.
Question 4: Calculate the orders for 6-month trial period if 45% of retailers exclusively order/reorder large packs and the remaining retailers exclusively order reorder small packs. Calculate the second 6 months accounting for the drop-out. Assume the performer ratios remain the same after the trail period.
Question 5: Determine the profit to SSI if three distribution centers are used. Repeat for four distribution centers network. Which network, if either, should be used?