The Manager of a Small Gas Station Observes That While

question 229

Multiple Choice

The manager of a small gas station observes that while gasoline sales have been steady, the service side of the business has declined, and mechanics are often idle. He decides to offer a promotion-a $20 off coupon for an oil change that is to be mailed to 800 households within a two-mile radius from the gas station. The cost of printing and mailing is $1,000. The normal cost of an oil change is $40. Materials and labor per oil change cost is $15. How many additional maintenance service jobs must result for the promotion to break even?

• A) 25 jobs
• B) 40 jobs
• C) 50 jobs
• D) 67 jobs
• E) 200 jobs

Grasp the concept of customer service dimensions in supply chain management.

Understand the implications of network facility number and location on total transportation and inventory costs.

Comprehend the value distributors add in the supply chain, especially in contexts of product dispersion to small customers.

Recognize the trade-offs involved in utilizing online versus traditional retail sales channels for product distribution.