Diamond Line Is a Distributor of Everything a Florist Needs

question 121

Multiple Choice

Diamond Line is a distributor of everything a florist needs to create a beautiful arrangement except the flowers. It sells to 10,000 flower and gift shops and 5,000 supermarkets nationwide. Each florist is called on four times a month and each supermarket is called on twice a month. Assume a 52-week calendar year and that each salesperson takes a four-week vacation. A sales call to a florist takes one hour, and a sales call to a supermarket takes two hours of selling time. An average salesperson spends 1,000 hours per year making sales calls. The number of salespeople Diamond Line needs to cover its account base is

• A) 15.
• B) 52.
• C) 240.
• D) 480.
• E) 720.

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Definitions:

Cycle Inventory

Inventory that is held or processed in batches, cycling through the production and supply chain processes.

Retailers

Businesses or individuals that purchase goods from manufacturers or wholesalers to sell them directly to consumers.

Safety Inventory

Additional stock that is kept in reserve to protect against stockouts caused by variability in demand or supply.

Time Sensitive

This term describes situations, operations, or processes that are highly dependent on the duration or timing in which they occur, necessitating prompt or precise scheduling.