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Michelle Sayer is Johnson & Johnson’s Walmart account manager, meaning that she oversees all operational interactions between Walmart and Johnson & Johnson. The Walmart account is so important to J&J that Michelle actually lives in Bentonville, Arkansas, which is where Walmart’s corporate headquarters is located.
Rafael Elwood works for Walmart and is Michelle’s main contact person. Rafael was concerned that Walmart was not purchasing as efficiently from J&J as it could, so he arranged for a meeting with Michelle to discuss their strategy.
To focus the conversation, Rafael suggested they look at one product. Listerine Cool Mint 250 ml. L Table 12.6 reports sales data for that product in one of Walmart’s stores over a 30-week period, while L Figure 12.3 displays the data in a graph. Table 12.7 provides data on demand, ordering costs, and holding costs for this product.
Then, answer the following question: Rafael turns to Michelle and asks, “What order quantity do you recommend we use for this product? Remember, we only ship in case quantities.
TABLE 12.7 Information Regarding Demand, Ordering Costs, and Holding Costs for Listerine Cool Mint \( 250 \mathrm{ml} \) Purc
Image transcription text
TABLE 12.? Information Regarding Demand. Ordering Costs. and Holding Costs for Listerlne Cool Mint 250 ml
Purchase price per unit $2.50 Annual holding cost percentage 25% Fixed ordering cost $6 Average weekly sales
(units) 12.3 Units per case 12 Cases per tier 24 Tiers per pallet 5
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SCIENCE
HEALTH SCIENCE
NURSING
CHE -03
