1) List and discuss the advantages and disadvantages of pur chasing a two-wheeled trailer for each store to use for de- livering Super Gyms.

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

3. List and discuss the advantages and disadvantages of stock- ing Super Gyms at the distribution centers, and then hav- ing the truck that makes deliveries from the distribution center to the retail stores also make deliveries of Super Gyms to individual customers.

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

5. Which alternative would you prefer? Why?

6.Draft a brief statement (catalog copy) to be inserted in the firm's spring-summer brochure that clearly explains to poten tial customers the policy you recommended in Question 5

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

Answer:

1.

Advantages:

• Reduced long-term logistical cost.
• Faster delivery of goods.
• Improved Customer Satisfaction
• Less reliability on third-party providers

Disadvantages:

• High initial purchase cost.
• Increased maintenance cost.
• Increase in expenses due to the higher requirement of manpower to operate the delivery fleet.

2.

Advantages:

• No initial high cost of buying the trucks and other resources.
• Easy access to the larger distribution system.
• Business benefit from the expertise of industry professionals.
• Wider reach due to the vast spread business distribution system of existing market players.

Disadvantages:

• A higher level of dependence on third-party service providers.
• No control over the shipment once it is handed over.
• Less control in the consumer satisfaction as the company doesn't control the delivery aspects.

3.

Advantages:

• The reduced workload at the retail centres.
• Increased time to focus on more critical aspects of the business.
• Improved order processing timeline.

Disadvantages:

• Increased cost due to warehouse fulfilment charges.
• Security of goods is a concern as they don't control the operations at the distribution centre.
• High level of inventory needs to be kept in stock so that the warehouse may provide space for storage. Low quantities of goods are mostly not entertained.

4.

Advantages:

• Increased revenue via delivery charges which will reduce the burden on the company.
• Increased revenue can be used to improve the effectivity and efficiency of the delivery system.
• Increased finances will also allow the company to increase their reach.

Disadvantages:

• Increase in the number of dissatisfied consumers as most people don't like to pay extra for delivery.
• Dissatisfied consumers will lead to a reduction in the number of orders.
• Charging delivery charges is not a good long-term strategy.

5.

The most suitable option for the company will be to sell small items directly from their store within a local area with a third party service provider. The larger items should be distributed by the warehouse via their fulfilment channel. This is because small goods are easy to pack and store but larger goods in high levels can't be stored at the retail store due to space constraints also the packaging and loading of these goods will take up a lot of precious time at the retail store but at the warehouse, they will be able to do it much faster and thus allowing the company with more time to focus on more important things of the business. Delivery charges in both types of products should be free and borne by the company

6.

Dear Consumers, We thank you for your purchase.

To serve you better the company has decided that goods to 50Kgs will be delivered directly from the store and any good above that weight limit will be delivered by our fulfilment partners. This will allow us to pass on the cost benefit to you with an improved service experience. If you would like to provide any feedback or suggestion we are all ears.

Hope your purchase serves you well.

7.

As there was no mention of S.U, Vs in the first meeting, the main question would be the reasoning for their sudden requirement and what implications it would have on the financial resources and how would it affect the business. Whether the result will be positive or negative of including SUVs will be taken into consideration.