Masterful Merchandising is a company that specializes in obtaining large quantities of products from multiple manufacturing companies and sells these products to end consumers. Its products include clothing, athletic equipment, electronics, home and kitchen products, groceries, and many other products. It prides itself in being a one-stop-shop where consumers can fill all their shopping Service Company needs without having to travel to multiple stores.

a. Masterful receives daily shipments of goods from manufacturers to stock its shelves. From cost perspective, is it cheaper to buy manufactured goods in small or large quantities? What incentives would a manufacturer provide in order to facilitate ordering large quantities?

b. Why would a merchandiser choose to operate online instead of through a brick-and-mortar store? Do you think an online presence eliminates the need to have a physical store for consumer shopping?