MGT204–Sales and promotion

Consider the customer-centred logistics involved in the manufacture of flat pack wooden furniture products in China for a New Zealand business. The New Zealand business then adds value by assembling the product before using distributors to supply retail outlets. The product sells as good quality,medium priced furniture. Explain:•The inbound distribution factors that will need to be considered, giving examples appropriate to the product and suggesting where they might be sourced from.•The outbound distribution factors, including analysis of the different options that could apply for this product at the various stages involved.•The reverse distribution factors and how they might be handled. Identify and discuss all the cost inputs (not actual cost, but the things that will add to the cost at every stage of the process) involved in getting this product to a customer. Your answer should distinguish between fixed and variable costs. The New Zealand business will set a recommended retail price for these furniture products. In setting the prices, what approaches should it consider? Which of the approaches would you think most appropriate? Explain why you have reached this conclusion?