Groothandel, B.V.
Group No.10
Pratibha Kamat -036
Anupam Bakshi 073
Mohammad Tanweer -090
Prajakata Kadu 101
Shreshth Agarwal - 114
Anjali Gupta -151
Answer1:
Card System:
1. 20% of the pharmacists rely on time tested card system for inventory
management.
Reason: It was quite simple to operate & it functioned properly.
Method: Whenever the pills were sold, PA would remove a corresponding
number of cards & the process continues until they reach the final card in the
envelope. The PA would then re-order the pharmaceutical the same amount
previously specified on the card.
Drawback: In many pharmacies, the PA could not determine the re-order
quantities as they were set many years ago. So in this case they manually
entered orders into the Electronic data interchange (EDI) system that the
wholesaler provided them.
In absence of any system, PA would simply order on the telephone.
Advantage:
They served their customers in a better way.
They could use the system in a more appropriate manner.
They did not want to learn the functionalities of the Stock Management System
Integrated System
1. 62 lines ordered.
Order size was reduced- i.e.
superior ISM inventory tracking
& efficient ordering software
models.
2. Average time to process an
order was 12 sec per line
3. No. of mistakes dropped to 3
nos. because the program
eliminated several manual
entry points & unnecessary
paperwork.
4. Monetary value of Inventory is
13800.
Information:
Number of person required= 9
Number of PAs=6
Number of pharmacist=2
Number of maintenance person=1
Salary of 1 PA= 28000/yr
Number of hours served by 1 PA= 1584hrs/yr (i.e. 36 hrs *44 weeks)
Salary per hours per PA= 17.67
Overtime cost per year= 8hrs per day* 17.67 * 1.25* 52weeks =9188.4 per year
So, Total cost for 6 PA =6*28000+9188.4= 177188.4/year
Let the cost of an order be =X
Let cost of a line=Y
Before the use of ISM by a pharmacy(Card System)
Total cost = salary of PAs+ inventory cost + ordering cost +cost of mistake in ordering
Hours of mistake in ordering per year= 4/60 *52*6= 20.8 hrs/year
Cost of mistake per year=20.8*17.67= 367.53
Total cost per year=177188.4 +18400 + (72Y+X)*52weeks*6days +
367.53=195955.93+312*(72X+Y)
Total cost=salary of PAs+ inventory cost + ordering cost +cost of mistake in ordering
Hours of mistake in ordering per year= 3/60 *52*6= 15.6 hrs per year
Cost of mistake per year=15.6*17.67=278.652/year
Answer 2
The total cost to TSM for providing this service is 2500(Euros)
The competitors are charging the price between 4000 to 7500(Euros)
There are three approaches of pricing
1. Cost based pricing
2. Competitor based pricing
3. Value based pricing
Answer3:
Different pricing tactics
Different tactics can help the organization to attract more customers and maximize
profits.
A. Discounting
TSM is entering into consulting service for the first time. Therefore they should quote
the prices in such a manner that would help them to gain market share. Discounting will
help them to be competitive in market.
B. Odd value pricing or charm pricing
One of the most common pricing tactics that company should use is to price their
products just a few pennies lower so that the first number of the price is lower.
For example, if you were using charm pricing, you would sell your products for $19.99
instead of $20 because $19.99 seems like it is less. It pushes your product into the $10$19.99 price bracket so it appears to cost much less than $20.
C. Penetration
Penetration is a tactic in which company start at a fair price and to gain market share
before competitors catch up. Once TSM have a loyal customer base in consulting, they
are able to find ways to raise prices later. They can charge more by giving more
upgrades.
D. Price bunding
TSM can use price bundling tactic to offer its product to customer. Price bundling is a
practice of selling more than one product for a single, lower price.
For example sometimes when we signed up for high-speed Internet connection, we also
get cable TV and telephone offer? If so, you probably pay less than if you were to get
the three services separately. Firms bundle products or services together to encourage
customers to stock up so they wont purchase competing brands, to encourage trial of a
new product, or to provide an incentive to purchase a less desirable product or service
to obtain a more desirable one in the same bundle.
Similarly TSM can provide its software in bundles to attract customers.