11.p Crew Soccer Shoes Company is considering a change in its current inventory control system for soccer shoes. The information regarding the shoes is as follows: Average demand 5 250 pairs/week Lead time 5 3 weeks Order cost 5 $75/order Unit cost 5 $21.50 Carrying charge rate 5 0.20 Desired service level 5 95 percent Standard deviation of weekly demand 5 40 Number of weeks per year 5 52 The company decides to use a fixed-order-quantity system. What is the economic order quantity? What should be the reorder point to have a 95 percent service level? Explain how the system will operate.

This activity is important because as a marketing manager, you must allocate resources to reach your target market. during the strategic marketing process, managers move through three important phases to determine how to optimally allocate resources: a planning phase, an implementation phase, and an evaluation phase. in this interactive exercise, you are asked to review various strategic marketing actions and determine where in the strategic marketing process the action would occur. the goal of this exercise is to demonstrate your understanding of the strategic marketing process and related marketing actions.