The question is: Discuss the characteristics of Raid rat spray that might sugges

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The question is:

Discuss the characteristics of Raid rat spray that might suggest that it should have a different type of inventory system.What factors should be considered in developing a system for Raid?

230 PART N Tools and Tactical Issues CASE STUDY Dano's Drugstore I on a The warehouse/service center that Dano's has close to a 100 percent fill rate argaret Dano opened her drugstore in 1951 y street corner in a small suburb of Chicago. orders from fore, it is safe to assume that any orders placed Originally, the store provided drugs and various other small items primarily to residents of the town. Over Tuesday morming will be delivered on V afternoon inventory system for three items: (1) Tylenol a Your initial assignment is to deve the course of decades, the store expanded as the sub- urbs of Chicago expanded. By 1996, the store had tripled from its original sire, occupying 5,000 square caplets, rat poison. Demand data for the previous year fo these three products is given in Exhibits 1 th (2) Milky Way candy bars, and (3) Rat leet of space. In the course of this expansion, the The three products sell for $5.99 Tylengh a the three pro percent, respectively. The cost of placing ar the store's display shelves, is estimated to be 53, store increased its product range, so that in to the pharmacy, it offered other items such as snack food, dental care items, suntan lotion, and bug spray. addition nd $9.99 (Raid). The profit products are 30 percent, to percent, and 21 (Milky Way), a The total breadth of the product line encompassed y orde grew, managing inventory repre- including stocking the order in the storeroom and more than 10,000 items As the sented a significant challenge. Margaret has tried numerous systems over the past few years, but most of these have not been very successful. The average Dano's Drugstore has averaged a 15 percent an. nual return on assets over the past four years . Mate item has 75 days' worth of inventory, yet the fill rate ret has a revolving line of credit at the local bank of all customer orders is approximately 90 percent. allows Dano's to borrow money at io percent. Cur rently, the drugstore has a loan in the amount of Any item that is out of stock will be backordered (with a rain check provided) upon customer request. $145,000 outstanding. Annual rent for the store is In approximately 50 percent of the cases where an$84,000, insurance is $24,000 per year, and mainte- item is out of stock, the customer simply buys thenance expenses are approximately $20,000, that the current inventory methods item from a competing drugstore. Margaret realizes are not working The current order policies for each of the three "test" units are as follows: well. In addition, she realizes that her background as a pharmacist may not have properly prepared her for managing the inventory for thousands of items. Fur- Tylenol Caplets Milky Way Raid Rat Order 100 c 30 If forecast thermore, Margaret would like to take a less active Q 600 role in her business and spend her winters in Florida. Therefore, she has hired you as a consultant to evalu- ate and improve the inventory methods for Dano's Dano's Drugstore is currently affiliated with a major national drugstore chain that supplies all of the ?.every 9 R-200 iterns that Dano's sells. Supplies are delivered weekly weeks order in a single shipment on Wednesday afternoon. Dano's must finalize its order by 9:00 a.m. Tuesday morming forecast number for next weel

Explanation / Answer

Answer:

Raid Rat Spray: This is the process of killing the rats in the given region/house/ organization, so that they do not harm the stored material at the plant level. Raid rat spray is the preferred process for preventing from the impacts of rats to the stored material in the organization.

Following are the key characteristics for the Raid Rat Spray as below

Inventory system: the inventory system should be designed in such a way that

Factors considered for the system of Raid:

The following factors to be considered for the Raid system as

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