Ellen's staff proposed two alternative distribution strategies for the stores in Illinois: The company began in Illinois and its stores in the state enjoyed strong sales. Each Illinois store sold, on average, 50,000 units a year of product from each supplier (for annual sales of 400,000 units per store). Holding costs for Michael’s were $1 per unit per year. Ellen asked her staff to propose different distribution alternatives for both Illinois and Arizona. Distribution Alternatives for Illinois Ellen’s staff proposed two alternative distribution strategies for the stores in Illinois: Use direct shipping with even larger trucks that had a capacity of 40,000 units. These trucks charged only $1,150 per delivery to an Illinois store. Using larger trucks would lower transportation costs but increase inventories because of the larger batch sizes. What is the Total savings and total cost for using larger trucks? Please do fast .. ASAP fast

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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Ellen's staff proposed two alternative distribution strategies for the stores in Illinois: The company began in Illinois and its stores in the state enjoyed strong sales. Each Illinois store sold, on average, 50,000 units a year of product from each supplier (for annual sales of 400,000 units per store). Holding costs for Michael’s were $1 per unit per year. Ellen asked her staff to propose different distribution alternatives for both Illinois and Arizona. Distribution Alternatives for Illinois Ellen’s staff proposed two alternative distribution strategies for the stores in Illinois: Use direct shipping with even larger trucks that had a capacity of 40,000 units. These trucks charged only $1,150 per delivery to an Illinois store. Using larger trucks would lower transportation costs but increase inventories because of the larger batch sizes. What is the Total savings and total cost for using larger trucks? Please do fast .. ASAP fast
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