Bob’s inventory manager has suddenly resigned, and he approached you for help in explaining: Warehouse And Distribution Channels Assignment, RMIT

QUESTION TWO

Bob’s inventory manager has suddenly resigned, and he approached you for help in explaining some inventory management concepts to him. Identify the various inventory holding costs relevant to his business, and the tangible and intangible costs that may be incurred when balancing out-of-stock and overstocking occurrences. Explain how the application of Pareto Law and ABC Profiling can also help minimise those tangible and intangible costs.

QUESTION THREE

Bob’s business is improving, and he is thinking of expanding his distribution network i.e. have more showrooms and car servicing centres. There are major decisions to be made in three areas when planning either warehouse or distribution networks. Describe any two (2) areas and explain why you consider them to be important to Bob’s business.

QUESTION FOUR

As Bob extends his distribution network, he will need to recruit competent distributors to manage the distribution channels. He approaches you to help him develop attractive value propositions to attract potential distributors. Identify four (4) types of information to be featured in the value proposals to intermediaries and explain why you believe these four types of information are considered critical to attract distributors to join Bob’s distribution network. What is/are to be submitted?

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