Michigan Liquor control commission * Please read Attached document answer questions end.
Alternative designs for distilled liquor distribution
The manufacturer could be allowed to store the liquor and deliver directly to the retailers when they place an order. The retailers would be placing orders directly to the manufacturer when their stocks decrease. Centralizing all the inventories at the manufacturer will allow the manufacturer to keep track of stock levels Chopra & Meindl, 2012.
The manufacturer would be able to identify demand of the liquor. Using this method the manufacturer is able to determine the products that are required in the market. Another method that can be used is the distributor storing the liquor and delivering to the retailer using carriers. Having multiple distributors to store the liquor ensures that retailers have a choice of where to place an order. Providing retailers with multiple places to pick or place orders increases competition and reduces the price for the product. In the case of Michigan having the commission been the sole distributor to the retailers has made the price of liquor to be determined by the commission. This does not provide room for competitive prices.
Benefits and risks of alternative designs for distilled liquor distribution
Using alternative designs for distributing the liquor...
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