Diskit Khartsan Ltd. had been providing the products to combat with various insects at Tel Aviv that mainly include the Israeli flying cockroach, Blatta lateralis, which is around 2.54cm long and could fly for short distances, with noise and unsightly, and had the risk to make the food contaminated. The company offered traps, netting, and sprays to get rid of these insects. As every heat wave caused an increase in infestations, thus the people around the Mediterranean secured themselves through Diskit’s HLH™ brand products that play a significant role in Diskit’s annual income by contributing around two-third of its revenue. The dilemma for the management was local retailers refused to possess the products in bulk quantity during the periods of low demand, which ultimately caused the stockouts problems during periods of high demand and consequently the company faced the lost in sales. In order to resolve the issue, the management took an initiative that increased the prices by 3 percent for retailers, but until the products were sold, the company permitted them to take the products into their balance sheet without payment.
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