CASE 1.

1 KIDDIELAND AND THE SUPER GYM

Zayar Zaw Win & Sai Thiha

IES (International Executive School)

Intro to Logistics

1. List and discuss the advantages and disadvantages of purchasing a two-wheel trailer for each
store to use for delivering the Super Gyms.
Advantages

If with the two-wheel trailer the company can deliver by itself and fast in time delivery, it can make
company cheap and effective and can deliveries others material. Not only for the delivery materials
from the company but also can rent this two-wheel trailer to other company needs. Therefore
company can get more income.

Disadvantages

The trailer cost will be high for the company investment and must pay a lot of cost for it like
licensing, insurance etc.,

And the company must take care for misuse of the trailers it will cost company for the insurance
processes. Thus, the profit of the company must share with the delivery processes it can cost more
for the company if there is less delivery. Also, maintenance cost for the trailer and other accessories
and repair cost are need to think before purchasing.

The parking space of trailer as well should need to think about as a one issue, if company have to
spend the money for this parking space. If there is no more income from this trailer it will be one of
the leaking of the company budget.

2 List and discuss the advantages and disadvantages of having local trucking companies deliver the
Super Gym from the retail stores to the customers

Advantage

As the market research 85% of the customers drive less than 25 minutes to the store, so with the fix
price of $40 per one shipment it will be effective for the company and the company do not need to
investment more on the delivery processes by itself.

Disadvantage

Local company want to delivery only twice a week not everyday thus it can cause the delay delivery
processes and the price was depending on the fuel cost and it can change according to the situation.

As of trucking companies are third party, we don’t know exactly how they are care about our
customers and if the materials will be delay it will be effective upon company image.

3 List and discuss the advantages and disadvantages of stocking Super Gyms at the distribution
centers and then having the truck that makes deliveries from the distribution center to the retail
stores also make deliveries of Super Gyms to individual customers

Advantage

It will be more effective and we can also make customer care service during delivery, also can get a
touch with customers.

All process A to Z will be manage by company, that’s why company will know with all strong point
and week point.

Disadvantages
Fuel cost, consumption, more human resources, vehicle maintenance cost, repairing cost and the risk
of driving and parking at the customer house it can damage the fence and grass field of the customer
and block the road during the unloading the shipment. It will be more budget expense for the
company.

4.List and discuss the advantages and disadvantages of charging customers for home delivery if
they are unable to carry home the Super Gym.

Advantage

To add 40$ in the price for the customer who cannot bring Super Gym by themself.

Disadvantage

Existing customer do not pay shipping costs and will lose the customer.

5.Which alternative would you prefer? Why?

I prefer the fourth alternative – It will be more suitable for the customer upon charge the deliver to
the customer who cannot bring Super Gym their own to their home

It can cover the customer to come to the shop one way and bring back round trip. It can safe
customer’s fuel time and driving risk.

Company do not need extra cost for the shipping. That’s why the company can earn more profit
without the transportation costs.

Customer can easily order products by phone/internet online orders and get comfortable home
delivery, but company need to transparent about delivery cost when offer quotation to customer.

6.Draft a brief statement (catalog copy) to be inserted in the firm’s spring–summer brochure that
clearly explains to potential customers the policy you recommended in question 5.

Sell price (Doorstep delivery) $ 755

Pick up at store (Take Away ) $ 715 (Discount for delivery charges 40$)

7.At the first meeting, A. J. asked about SUVs, but there was no further mention of them. How
would you follow up on his query?

Advantages

Most of the customer own SUV it can carry Super Gym with them easily.

Disadvantage

But for the loading the company can easily upload for them with the forklift ect., for the download at
their home it will be difficult for them to download by their own.