A Regional Grocery Chain Spends 70 Percent of Its Sales

question 27

Essay

A regional grocery chain spends 70 percent of its sales in the supply chain, and has a net profit margin of 2 percent. They have just initiated an Internet-based inventory management program that is expected to save the chain $500,000 per year. What is the equivalent increase in sales to this saving? Use Table 11.3, reproduced below.

---

Definitions:

Shadow Negotiations

The often unseen or unofficial discussions and maneuvers that occur parallel to formal negotiations, shaping perceptions and agreements.

Peril

The exposure to serious and immediate danger or risk.

Pervasive Unhappiness

Widespread or all-encompassing feelings of sadness or dissatisfaction.

Ultimatums

Ultimatums, which are definitive conditions or propositions whose refusal will lead to countermeasures or the collapse of relationships.