TO/Do Chapter 9 Ethical Dilemma Although buried by mass customization and a proliferation of new products of numerous sizes and variations, grocery chains continue to seek to maximize payoff from their layout. Their layout includes a marketable commodity-shelf space and they charge for it. This charge is known as a slotting fee. Recent estimates are that food manufacturers now spend some 13% of sales on trade promotions, which is paid to grocers to get them to promote and discount the manufacturer's products. A portion of these fees is for slotting, but slotting fees drive up the manufacturer's cost. They also put the small company with a new product at a disadvantage because small companies with limited resources may be squeezed out of the marketplace. Slotting fees may also mean that customers may no longer be able to find the special local brand. Q) Do you think slotting fees are ethical? Why or why not? Be specific and explain. NOTE: If you research this outside of the textbook, you must provide your sources. Word Limit 250 Words Submit AI Free Work BOOK Name: Principles of Operations Management by: Jay Heizer Barry Render Chuck Munson, Eleventh Edition

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