Kiddieland and Super Gem

558 Words3 Pages
CASE 1-2 KIDDIELAND AND THE SUPER GYM Question 1: List and discuss the advantages and disadvantages of purchasing a two-wheeled trailer for each store to use for delivering Super Gyms. Because the stores are in a number of states, one would have to check the motor vehicle and insurance requirements of each state. An advantage is that deliveries would be under the control of each store. A disadvantage may be labor costs, especially if two workers are needed to make the delivery. Also, once at the site, the store’s employees might be asked to assist in the assembly of the gym. Question 2: List and discuss the advantages and disadvantages of having local trucking companies deliver the Super Gym from the retail stores to the customers. There are probably no disadvantages to using a local trucking company to make the delivery. A decision would have to be made how to handle the trucking firm’s charges. Question 3: List and discuss the advantages and disadvantages of stocking Super Gyms at the distribution centers and then having the truck that make deliveries from the distribution center to the retail stores and also make deliveries of Super Gyms to individual customers. The problem here focuses on the size of equipment; the large tractor-trailer combinations are not suited to making home deliveries. The actual costs to KiddieLand of using trucks this way might be very high. There might be some savings in inventory costs by stocking the gyms at the distribution center rather than at each retail store. Question 4: List and discuss the advantages and disadvantages of charging the customer for home delivery if they are unable to carry the Super Gym home. Perhaps the one advantage to charging for home delivery is that KiddieLand recoups the associated costs. However, because charged home delivery will add to the customer’s total
Open Document