The Role of Wholesalers
3.00
A beauty supply wholesaler had an average inventory of $1,500,000 and the cost of goods sold was $4,500,000. This is the inventory turnover.
$12.50
A wholesaler purchases desk lamps at a price of $10. They set the markup percentage as 25 percent. This is how much the wholesaler should sell the lamps to a retailer.
$0.54
If a wholesaler purchases laundry detergent at $2.00 per bottle and decides to set the markup percentage at 27 percent, this is what the wholesaler's profit will be per bottle.
Shipping costs
NOT an example of inventory carrying cost
Selling products to customers in a store
NOT one of the functions of a wholesaler in the distribution channel
Pull strategy
Rebecca needs to sell her store's remaining stock of coats and gloves, so she holds a one-day blowout sale and tells customers to "get it before it is gone." Rebecca is using this type of strategy.
$15.47
Sam wants the markup percentage on the shirts he is selling to be 19 percent. If the shirts cost Sam $13 each, this is how much he should charge customers for each shirt.
Inventory carrying costs
The cost of maintaining inventory in a company's warehouse are referred to as this
True
True or False: Cross-docking is the re-routing of inventory through a warehouse.
False
True or False: Direct marketing channels use intermediaries such as wholesalers and retailers.
True
True or False: The four main parties in a distribution channel are manufacturers, wholesalers, retailers and consumers.
False
True or False: The matching phase consists of conducting market research to find potential customers.
Reaching an agreement with retailers on the price of products
best describes negotiation
Intermediaries between manufacturers and retailers
best describes wholesalers
A third party acting as a middleman connecting people and things
describes intermediary
When products need to be stored in the warehouse for a long time
situation where the cross-docking technique should NOT be used
Push strategy
strategy that is used by companies to convince retailers to promote their product over competitor's products
Pull strategy
strategy that tries to create an increased demand by making customers feel like they only have a short time to purchase the products
There is no "ideal" number applying to all companies
the "ideal" inventory turnover number
Cost of goods sold ÷ average inventory
the formula used to calculate inventory turnover