Question

In: Economics

Dollar stores like Dollar General do not pay customers’ transportation costs. Nonetheless, such stores have the...

  1. Dollar stores like Dollar General do not pay customers’ transportation costs. Nonetheless, such stores have the incentive to minimize customers’ transportation costs. Why?

Solutions

Expert Solution

Dollar general depend on distribution and transportation system to give merchandise to the stores in a convenient and financially savvy way. Utilizing different methods of transportation, including sea, rail, and truck, dollar general merchants move merchandise from seller areas to company’s circulation focuses. Distribution to dollar general stores happen from our dispersion focuses or legitimately from merchants. Any interruption, unforeseen or unordinary cost or operational disappointment identified with this procedure could influence store tasks adversely. For instance, conveyance postponements or increments in transportation costs (counting through expanded fuel costs, expanded bearer rates or driver compensation because of driver deficiencies, a lessening in transportation limit with regards to abroad shipments, or work stoppages or lulls) could altogether diminish their capacity to make deals and win benefits. Work deficiencies or work stoppages in the transportation business or long haul disturbances to the national and universal transportation framework that lead to postponements or interferences of distribution or which would require our verifying elective work or delivering providers could likewise expand their expenses or generally adversely influence business.


Related Solutions

Do Dollar General have plans to try to expand beyond our borders?
Do Dollar General have plans to try to expand beyond our borders?
6. 25% of the customers at XYZ Stores use a debit card to pay for their...
6. 25% of the customers at XYZ Stores use a debit card to pay for their purchases. In a recent market research study, 18 of the Store’s over 20,000 customers on record was randomly selected for two focus groups on new payment technologies. (5 points) a. Istheselectionof18customersabinomialexperiment?Pleaseexplain. b. Whatistheprobabilitythat5ofthe18customersselecteduseadebit card to pay for their purchases? c. What is the probability that at least 4 of the 18 customers selected use a debit card to pay for their purchases? d. Whatistheprobabilitythatatmost4ofthe18customersselectedusea...
A) A company that owns a large number of grocery stores claims that customers who pay...
A) A company that owns a large number of grocery stores claims that customers who pay by personal check spend an average of $87 with a standard deviation of $22. Assume the amount spent by these customers is normally distributed. What is the probability that a customer using a check spends less than $90? Express your answer as a decimal rounded to four places after the decimal point. B) A company that owns a large number of grocery stores claims...
Earlier this year, Terzetto Hot Tubs implemented a promotion where customers do not have to pay...
Earlier this year, Terzetto Hot Tubs implemented a promotion where customers do not have to pay for their purchase for three years after the date of delivery (they sign a non-interest-bearing note instead). Because people have been unable to go on vacations, sales have been brisk. The typical hot tub sells for $8,000 (the “sticker price”) and customers would normally be charged 10% annual interest on any unpaid balance in their account.           a.       Identify what is being “sold” or briefly...
1.In exporting, to what point does the seller pay transportation anddelivery costs? Where does...
1. In exporting, to what point does the seller pay transportation and delivery costs? Where does the responsibility for loss or damage pass to the buyer? Use Incoterms in your response.2. What is the procedure for a letter-of-credit transaction?
Why do transportation costs initially decrease as the number of warehouses in a system increases?
Why do transportation costs initially decrease as the number of warehouses in a system increases?
Supermarkets have limited the number of customers who are in their stores at any one time....
Supermarkets have limited the number of customers who are in their stores at any one time. At one particular store, store managers decide that 100 customers at one time is necessary to ensure social distancing guidelines mandated by the government. One store manger suspects that the number of customers is more than 100 so he counts the number of customers for a week at different times of the day and on different days of the week. Here are the numbers:...
Assign costs to customers by using an ABC approach. Round your answers and all intermediate calculations to the nearest dollar.
Activity-Based Customer CostingSleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepeze’s customer activity are as follows:Large RetailerSmaller RetailersUnits purchased108,00072,000Orders placed363,600Number of sales calls18882Manufacturing costs$43,200,000$28,800,000Order filling costs allocated*$1,636,200$1,090,800Sales force costs allocated*$756,000$504,000*Currently allocated on sales...
It’s one thing to have customers that are loyal like the spa customer is expected to...
It’s one thing to have customers that are loyal like the spa customer is expected to be. It’s another thing to develop loyal AND profitable customers. Both customer attributes are essential if you are to run a successful firm. Assume you have four products and three customers. You can see that both products and customers range from highly profitable to unprofitable. When you know which customers are most profitable and what they buy, you can segment them according to profitability...
A company would like to estimate how much its employees pay in childcare costs per month...
A company would like to estimate how much its employees pay in childcare costs per month in order to decide whether it would be worthwhile to provide day care facilities to its employees. The company was advised by a statistician that childcare cost per month historically follows a normal distribution. A random sample of 25 employees who use childcare services revealed that on average they paid $300 per month in childcare costs with a standard deviation equal to $10. Estimate...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT