Kiddieland Case Study

771 Words4 Pages
Facts: Kiddieland is a retailer of toys located in the Midwest. They market a full range of toys, electronic games, computers, and play sets. The keys to KiddieLand success have been a comprehensive product line, aggressive pricing and self-service. Donald Hurst is KiddieLand’s logistics manager. His primary mission is to make sure all stores are in stock at all times without maintaining excessive levels of inventory. Problem: The problem or the issue was the company has never shipped something this big, they had to come up with ideas of how to make a profit and how to reach it to the customers. 
 Possible Solution(s): Purchase a two-wheeled trailer each store, find a local trucking company that can haul the Super Gym from KiddieLand store to the customer, stock the Super Gym at the two distribution center and have the truck that makes delivery runs to the retail stores also make home deliveries, charge for delivery if the customer cannot get the Super Gym home, negotiate with the Super Gym manufacturer to ship directly to the customer. 
 Recommended Solution: Go ahead and store in their warehouses and then ship to customer by eating the cost of shipping which means $16,000.00 for delivery. Implementation: The various departments involved are marketing, sales, warehouse manager, transportation manager, CEO, and CFO. They need to meet up to discuss the various pros and cons of a decision to outsource the delivery of Super Gym. Once in agreement, they would need to keep the flow running smooth and absorb the cost of shipping the material. Question 1: List and discuss the advantages and disadvantages of purchasing a two-wheeled trailer for each store to use for delivering Super Gyms. 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
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