Welcome aboard! We are a purchasing team and you are our newest buyer. As a new team
member you have been instructed to establish an understanding for a new product we are looking to
provide to our customers.
We do not manufacturer – all of our items have a 30 day lead time and we purchase the items from a
US supplier. We buy finished goods only and warehouse our products to provide excellent customer
service.
Research a product (THE PRODUCT IS AN ELEVATOR SENSOR) and answer the following:
A. Product
1) Provide a complete description of your product.
a. Include the brand of your product and why is brand important?
b. Include components
c. How difficult do you feel this product is to manufacture – why? How does this affect your cost?
2) What purpose does your product serve?
3) Provide variations of your product.
4) Who is the end user for this product?
5) What is the retail price range of your item? (Provide three specific examples)
B. Competition
1) Provide three other brands (if available) for this product.
2) What do the other brands offer or not offer?
3) Where else can your item be purchased? Provide at least “2� competitors.
4) What do these competitors offer that would bring a consumer in to buy this item?
5) What s the retail price range for the competition? (Provide three specific examples)
C. Forecasting and Seasonality
1) Does this item have seasonality – explain?
2) How important is safety stock to your product and why?
D. Storing the Product
1) How is your item packaged – case pack? (for example – 20 packs of 10 pens = one case)
a. For the “buyer�
b. For the end consumer?
c. Considering the way your item is packaged – What do you feel a reasonable minimum
order quantity would be on your item? Why?
2) How does your item impact warehouse storage space?
a.Does your item require any “special� inventory managing – for example refrigeration or handling by equipment?
b.Does your item take up a lot of warehouse space? Explain.
3) Where do you feel your product is in the product life cycle (Development, Introduction, Growth,
Maturity, Saturation, or Decline) – explain? How does your knowledge of the product life cycle
make you a better buyer or does it? Does your product life cycle knowledge impact inventory
levels?
E. Modes of Transportation
1) There are five modes of transportation (Road, Rail, Water, Air, and Pipeline). Which mode(s)
of transportation do you feel your product will use during its manufacturing, storing, and
delivery to the end consumer? Why is this information important to you as a purchasing and
inventory professional?
F. Quality & the Environment
1) What does your item provide as far as warranty/quality? Why is this important?
2) Does your item state anything about being environmentally responsible? Why is this
important?
G. Summary
Provide a final summary explaining how this project was or was not beneficial to you.
Required – minimum THREE sources – and 3 to 10 pages in length (NOT including the cover page and bibliography)