How can the idea of substitute products shape the competition to regain the market share from competitors post Covid-19? Bring an example to explain your idea.
Consider an average fashion retailer post Covid-19 and their relationship with their suppliers specifically in Asia and strategies to keep their suppliers on the payroll in order to meet fluctuating demand. Come up with a three phase plan to manage suppliers, open windows of opportunity for post Covid-19 emerging potential suppliers and make sure the image of the brand will not be damaged.
A large producer of household products purchases a glyceride used in one of its deodorant soaps from outside of the company. It uses the glyceride at a fairly steady rate of 40 pounds per month, and the company uses a 23 percent annual interest rate to compute holding costs. The chemical can be purchased from two suppliers, A and B. A offers the following all-units discount schedule: Order Size Price per Pound OSO< 500 500 SQ< 1,000 1,000 SQ $1.30 1.20 1.10 K = $150/order Find the optimal order amount and the optimal total inventory cost of supplier A. Note: Supplier B follows the incremental disccount and we did not cover it in the class.
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