This policy was framed o ensure that the overheads and transportation cost of the materials could be made up from the mark up. We use weight-average method to allocate order entry expenses into three activities, manual order, line items, and EDI checks.
We also have desktop deliver option for customer. What are the limitations, if any, to the estimates of the profitability of the two customers? The company had also arranged for several distribution centers where the shipments were required to be unloaded and packed into cartons meant to be delivered to the respective customers.
However, customer B have 25 desktop deliveries.
By using a typical business model, DOP ships the items from manufacturers and unloaded in its distribution centre. This company was dealing in numerous products and was also making strides in adapting varied operational methodologies such as the desktop delivery or the sales through e commerce internet sites.
Maiga, A. They were regional distributors for office supplies and the major clientele served by the company included institutional and commercial clients. We also suggest customer B switch traditional manual order entry and line items to EDI orders.