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Nt1310 Unit 2 Term Paper

Satisfactory Essays

Accordingly, to reach the scale of revenue required would mean increasing the number of transactions per month a few folds from 2,000 to 8,000 transactions. Moreover this would require not only increase in the marketing of the existing 2,000 products listed on the store, but a significant increase in the breadth of product offerings. If the number of vendors was not going to increase the current process might continue be manageable, nevertheless one of the Store’s strategies is to limit the number of products from each vendor to only 20, hence requiring an increase in the number of vendors fourfold which is relative to the increase in revenue. Consequently, the potential increased volume of transactions and vendors would require an increase in the number of employees to perform the activities if the existing process were to be maintained. The increase in transaction and vendor volumes would be relative to the amount of time it takes to manage the invoicing of vendor payments. Of the six days per month taken to manage the processes, four days are for invoicing, which would now need to be multiplied by four, resulting in 16 days per month, more than half of the month being spent processing invoices by one of The Store’s admin team. This is valuable time taken away from more productive activities. …show more content…

Further, it would open the business up to an increased amount of processing error. This could result in unhappy vendors who might cease working with the store, giving The Store a bad reputation resulting in loss of products in market consequently the potential decline in revenue. The above option is not an attractive one considering Fairfax’s objectives. While currently manageable, its overall performance with increased volumes would not be

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