Michigan Liquor Control Commission * Please Read

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 will increase competition and the price of liquor will decrease. The state will also collect more revenue as more people will be able to afford the liquor.

Alternative distributions will also reduce the cost for the manufacturer as they will store the product in their warehouse, and only ship them when retailers place orders. The manufacturer's costs can be reduced if the retailers come to collect the liquor directly from their warehouses. This way the cost of freight will be reduced as the retailers will cater for the transportation costs. The risks in these designs are that retailers can start charging more for the liquor, which would result in reduced sales.

Retailers are also prone to competition from each other and this could reduce the cost of liquor and encourage more drinkers. There will be no control for retailers as they have the chance to purchase the liquor from the cheapest distributor. Competition can also result in customer abuse by the competitors. Importance of the historical conditions today The historical conditions that necessitated the liquor distribution systems are not important today. This is because the distribution system is too costly for the manufacturers and the retailers.

The system has also made the overall price of liquor to increase, which makes it difficult for consumers to purchase the liquor. The charges charged by the commission for the storage, and transportation of the liquor are exorbitant, and this increases the freight cost to the manufacturers Sjolander & Kakela, 1988. The retailers are forced to make their own arrangements for collecting or rely on independent couriers to deliver the liquor to their stores. The commission should not have any political patronage.

Currently the commission is influenced by politics, which makes it liable to graft, and corruption. The commissioners should not be appointed by the governor. This will ensure that the commission is not politically influenced in the performance if its responsibilities. Been the sole state wholesaler does not provide retailers with much option on where to source for their liquor. This increases demand and the retail price is determined by the commission. Inherent social conflict Relying on tax from liquor sales to fund education does pose some social conflict.

Alcohol is a problem causing narcotic drug, and it has far-reaching effects on the lives of children. Using tax collected from the sales of alcohol to fund education makes it look like alcohol is good to the children. This might encourage the children to become drinkers when they grow up. Worse they can become drunkards and abuse alcohol at a young age. The state uses the funds it collects from alcohol sales to educate children on the effects of alcohol.

This is socially wrong as the state is encouraging alcoholism on one hand and discouraging it on the other. This gives out two opposing stands that can be confusing for children and the society. There has been no correlation to the effects that the state imposes to the reduction in drunken driving or preventing underage drinking. Organizing the final report on distilled liquor distribution The final report on distilled liquor distribution would be organized in a.