Case Study 1-1: Kiddieland

1. Some advantages to purchasing a two-wheeled trailer for each store are not having to pay shipping or delivery charges once the gym has been purchased and the customer can use the trailer without incurring an additional rental fee or cost to them as well as the convenience of the customer being able to take the gym home with them immediately. Some disadvantages would be primarily profit loss, inconvenience to many customers who do not have vehicles which accommodate trailer hitches, the liability for licensing and insuring each trailer and conflicts arising when more one gym is purchased and the trailer is being used for another delivery. Upon first glance, the disadvantages to both the consumer and the company are too great for this to be a viable option; however, more research and discussion may be needed to validate this as an option. 2. Some advantages of getting a local trucking company to deliver directly to the customers is once the customer pays for the product, the shipping to their location would be shouldered by the company and it would be conveniently delivered to their location. Some disadvantages would be the additional cost of shipping past the 25 mile mark and the infrequency of delivery scheduling. If customers have to wait a few days to get their product, their time utility and place utility may be better met if they opt for a cheaper, more easily obtained gym rather than the Super Gym. 3. Some advantages to stocking the trucks at distribution centers and delivering the gyms with retail store deliveries are the convenience to the customer, making the place and time utilities more beneficial to the customers, and being able to ship directly to the customer without needing to hire additional shipping services by using trucks which are already being used for deliveries. Some disadvantages are the possible liabilities with damage to private property, loss of utility of space in the warehouse while these gyms are sitting there waiting to