Question
Suppose that Stillwater_5 has two classes of distributors: JIT distributors and non JlT distributors. The JIT distributor places small, frequent orders, and the non JTT
Suppose that Stillwater_5 has two classes of distributors: JIT distributors and non JlT distributors. The JIT distributor places small, frequent orders, and the non JTT distributor tends to place larger, less frequent orders. Both types of' distributors are buying the same product. Stillwater_4 provides the following information about customer-related activities and costs for most recent quarter:
JIT. Non JIT Distributors Distributors
Sales orders 100 20 Sales calls 200 100 Service calls 180 20 Average order size 5 20 Unit COGM 40 40 selling price per unit 60 60
Customer costs: Processing sales orders 3,600 Selling goods 3,000 Servicing goods 2,400 Total 9,000 : Required: 1. A Customer Profitability Analysis for Stillwater_5. 2. As a director of the sales division, what are your comments 3 lines max
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