One common Christmas tradition in many households is the Claxton fruitcake.The fruitcake bakery in Claxton,Georgia,makes about 6 million pounds of fruitcake annually and has $12 million in sales.One fruitcake batch weighs 375 pounds.About 70 percent of that weight is fruits and nuts.A single batch is divided into 34 loaf pans that hold 11 pounds each.Loaves are cooked for 100 minutes at 375 degrees.The bakery can cook 6,000 pounds at a time.During the baking season (August-December),the bakery uses a tractor-trailer load of raisins each day.The suggested retail price of a one-pound Claxton fruitcake is $3.69.
-Refer to Claxton Fruitcakes.For a corporation that has been giving its key customers Claxton fruitcakes since 1950,placing the order for cakes to be delivered this year would be an example of what type of situation because some negotiation about price and quantity must occur each year?

Question

Quizplus · Accepted Answer

Based on the information given, it is likely that the corporation has been ordering Claxton fruitcakes for many years, but negotiations about price and quantity must occur each year. This suggests that it is not a straight rebuy, where the same product is purchased without any changes. It is also not a contingency buy, which is an unplanned purchase in response to an unexpected event. A situational buy could potentially fit, but it is not the best choice because the situation (giving gifts to key customers) is recurring and therefore not truly a unique or one-time event. The best choice is a modified rebuy, where the purchasing decision involves some changes or modifications from previous orders. In this case, the negotiations about price and quantity each year suggest that there may be some modifications or adjustments to the order from previous years.

One Common Christmas Tradition in Many Households Is the Claxton