Globus
Your company, headquartered in the U.S., began operations five years ago and maintains a production facility in Taiwan. It assembles all of its cameras at a modern facility in Taiwan and ships them directly to camera retailers (multi-store chains that sell electronics products, local camera shops, and online electronics firms) located in Europe-Africa, Asia-Pacific, Latin America, and North America. The company maintains regional sales offices in Milan, Italy; Singapore; Sao Paulo, Brazil; and Toronto, Canada to handle the company’s sales and promotion efforts in each geographic region and help support the merchandising efforts of area retailers who stock the company’s brand. Retailers endeavor to maintain ample inventories of camera models in their own stores and warehouses to satisfy shopper demand.
Seasonal Production and Seasonal Demand. Camera demand is seasonal, with about 20 percent of consumer demand coming in each of the first three quarters of each calendar year and 40 percent coming during the fourth-quarter holiday season. Retailers place orders for digital cameras roughly 90 days in advance of expected sales, so as to have ample numbers on hand to satisfy camera buyer demand in the upcoming quarter. Thus, during Quarter 1 they place orders for the cameras they expect to sell in Quarter
2; during Quarter 2 they place orders for the cameras they expect to sell in Quarter 3, during Quarter 3 they place orders for the cameras they expect to sell in the peak holiday season fourth quarter; and in Quarter 4 they order the number of cameras they expect to sell in Quarter 1 of the following year.
The company assembles cameras within 30 days of the receipt of a retailer's order and ships them the day they are assembled; cameras assembled and shipped in one quarter are available for sales by camera retailers the following quarter. No camera models are assembled in advance, warehoused in company facilities, and then used to fill incoming
Seasonal Production and Seasonal Demand. Camera demand is seasonal, with about 20 percent of consumer demand coming in each of the first three quarters of each calendar year and 40 percent coming during the fourth-quarter holiday season. Retailers place orders for digital cameras roughly 90 days in advance of expected sales, so as to have ample numbers on hand to satisfy camera buyer demand in the upcoming quarter. Thus, during Quarter 1 they place orders for the cameras they expect to sell in Quarter
2; during Quarter 2 they place orders for the cameras they expect to sell in Quarter 3, during Quarter 3 they place orders for the cameras they expect to sell in the peak holiday season fourth quarter; and in Quarter 4 they order the number of cameras they expect to sell in Quarter 1 of the following year.
The company assembles cameras within 30 days of the receipt of a retailer's order and ships them the day they are assembled; cameras assembled and shipped in one quarter are available for sales by camera retailers the following quarter. No camera models are assembled in advance, warehoused in company facilities, and then used to fill incoming