Question

Always Round Tire has service stores in Memphis and Knoxville (which are hundreds of miles apart)....

Always Round Tire has service stores in Memphis and Knoxville (which are hundreds of miles apart). The company is considering the decentralization of pricing decisions. What costs/benefits that need to be considered before making this change?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Before making this change, one must consider the reduction in the overall outlet costs where the cost of stores in reduced and apart from that the trend nowadays is mainly focussing on the accessibility of the product at the door step where the sales can get to increase which would overall be beneficial to the customers. However, the company need to make sure that proper warehouses are located at certain locations on the whole which makes the delivery easy.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500...
Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes that the standard deviation is 5000 miles and that tire mileage is normally distributed. To promote the new tire, Grear has offered to refund some money if the tire fails to reach 30,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 30,000 miles, Grear will refund a customer $1 per 100 miles short...
Stock Inc. has two sites in Pittsburgh that are four miles apart. Each site consists of...
Stock Inc. has two sites in Pittsburgh that are four miles apart. Each site consists of a large factory with office space for 25 users at the front of the factory and up to 50 workstations in two work cells on each factory floor. All office users need access to an inventory database that runs on a server at the Allegheny Street location; they also need access to a billing application with data residing on a server at the Monongahela...
Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant...
Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to serve as a parking lot for customers. Management is considering the following bids involving two different qualities of surfacing for a parking area of 11,300 square yards. Bid A: A surface that costs $5.50 per square yard to install. This surface will have to be replaced at the end of 5 years. The annual maintenance cost...
At the Spring Valley​ Company, the cost of the personnel department has always been charged to...
At the Spring Valley​ Company, the cost of the personnel department has always been charged to production departments based upon number of employees.​ Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs. Total personnel department costs are $290,000. Department A B C Number of employees 65 260 250 Number of new hires 20 18 14 If the number of employees is considered the cost​ driver, what amount...
CASE STUDY: DATA WAREHOUSING AT VOLVO Every Volvo car has hundreds of microprocessors and sensors. Their...
CASE STUDY: DATA WAREHOUSING AT VOLVO Every Volvo car has hundreds of microprocessors and sensors. Their data is used in diagnosis and repair. It is also captured by Volvo, integrated with the company's CRM, dealership and product data stores, and stored for analysis. This enables Volvo to spot design and construction flaws early, enable proactive correction of faults, and see how its cars respond in accidents. Volvo sells about 400,000 cars per year. Each generates 100–150 kB of data per...
SERVICE MARKETING Case Study Vick’s Pizza Corporation Speed had always been a key strategic thrust for...
SERVICE MARKETING Case Study Vick’s Pizza Corporation Speed had always been a key strategic thrust for Vick’s Pizza, which was used the slogan, “It’s quick at Vick’s.” The company restaurants not only prepared pizza rapidly but also delivered it quickly. The company’s promise to home deliver a pizza within 30 minutes of a phone order or to cut $3 off the price had boosted it from a single pizzeria 20 years earlier to the status of a national chain with...
CASE STUDY: DATA WAREHOUSING AT VOLVO Every Volvo car has hundreds of microprocessors and sensors. Their...
CASE STUDY: DATA WAREHOUSING AT VOLVO Every Volvo car has hundreds of microprocessors and sensors. Their data is used in diagnosis and repair. It is also captured by Volvo, integrated with the company's CRM, dealership and product data stores, and stored for analysis. This enables Volvo to spot design and construction flaws early, enable proactive correction of faults, and see how its cars respond in accidents. Volvo sells about 400,000 cars per year. Each generates 100–150 kB of data per...
Your company assembles five different models of a motor scooter that is sold in specialty stores...
Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,380 units. Because of the unique characteristics of the engine, special tooling is...
CASE STUDY: DATA WAREHOUSING AT VOLVO Every Volvo car has hundreds of microprocessors and sensors. Their...
CASE STUDY: DATA WAREHOUSING AT VOLVO Every Volvo car has hundreds of microprocessors and sensors. Their data is used in diagnosis and repair. It is also captured by Volvo, integrated with the company's CRM, dealership and product data stores, and stored for analysis. This enables Volvo to spot design and construction flaws early, enable proactive correction of faults, and see how its cars respond in accidents. Volvo sells about 400,000 cars per year. Each generates 100–150 kB of data per...
30. Hanung Corp has two service​ departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are...
30. Hanung Corp has two service​ departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are allocated on the basis of budgeted maintenance−hours. Personnel Department costs of $150,000 are allocated based on the number of employees. The costs of operating departments A and B are $184,000 and $276,000​, respectively. Data on budgeted maintenance−hours and number of employees are as​ follows:                                                                                                                     Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $310,000 $150,000 $184,000 $276,000 Budgeted maintenance−hours NA 880...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT