Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You work as the purchasing officer for a medium-sized Safety Solutions business that sells safety products (Protective Equipment) to its clients as part of its

You work as the purchasing officer for a medium-sized Safety Solutions business that sells safety products (Protective Equipment) to its clients as part of its exclusive product range. Your main clients are workers at the nearby mine and you are the only distributor of safety gear in the area. Your organisation usually buys the PPE hard hats wholesale from a company based in the nearest capital city 500km away in boxes of 30 units each and resells them at $50.00 per unit with a mark-up of 100%. On average, they sell 10 items of 'Product A' and 45 items of 'Product B' over a two-week period. The stock control system is configured to keep only one month of stock on hand. Stocks are replenished monthly.

You have been looking at your perpetual stocktaking system and have noticed that 'Product A' is often out of stock for periods of up to two weeks. You have also noticed that 'Product B' stock levels are often down to less than 5 boxes when re-stocking orders are placed. What information would you need before advising your supervisor about future purchase requirements?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management in Practice

Authors: Samuel J. Mantel Jr., Jack R. Meredith, Sco

4th edition

470533013, 978-0470533017

More Books

Students also viewed these General Management questions