Principles Of Operations Management
Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
Question
Book Icon
Chapter 9, Problem 1ED
Summary Introduction

Summary:

Groceries are looking at attaining maximum payoffs from their layouts. They will have a layout with a shelf place and they charge for that. The charge is known as slotting fee. It is part of the expense of the manufacturer.

Slotting fee will increase the manufacturer’s cost. It is possible that customer might not find their desired local product if slotting fees is permitted.

To determine: How much ethical are slotting fees.

Expert Solution & Answer
Check Mark

Explanation of Solution

Ethical nature of slotting fees:

Slotting fee cannot be termed as unethical because it is a marketing strategy. The manufacturer is paying the retailer additional charge as slotting fee. This will enable the retailer to sell products at a lower cost. Sometimes slotting fees will amount to half the profit of a grocer.

But slotting fees might hinder the smaller companies and their products to get a frontline shelf in the store.  Slotting fees will aid in reinforcing the strength of the major players in the market. It is simply taking advantage of the free market available. Hence, slotting fees cannot be termed as unethical.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Can you write me an email about addressing an issue to mentor my supervisor the right way of deligating operations duties
Can you right me an email about addressing an issue to mentor the right why of deligating operations duties
Define delegation. Discuss in detail the four reasons why managers do delegation? Also statethe four main types of delegation.
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • Text book image
    Practical Management Science
    Operations Management
    ISBN:9781337406659
    Author:WINSTON, Wayne L.
    Publisher:Cengage,
    Text book image
    MARKETING 2018
    Marketing
    ISBN:9780357033753
    Author:Pride
    Publisher:CENGAGE L
    Text book image
    Marketing
    Marketing
    ISBN:9780357033791
    Author:Pride, William M
    Publisher:South Western Educational Publishing
  • Text book image
    Purchasing and Supply Chain Management
    Operations Management
    ISBN:9781285869681
    Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
    Publisher:Cengage Learning
    Text book image
    Principles of Management
    Management
    ISBN:9780998625768
    Author:OpenStax
    Publisher:OpenStax College
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Text book image
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College