Kiddie Land Gym

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Case number 1-1 Kiddie Land Gym

Overview of the case:

Starting in March Kiddie Land would begin to promote a new a new product Super Gym Outdoor children’s Exercise center. 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.

Case Questions:

1. Advantages and disadvantages of purchasing a two-wheeled trailer for each store to use for delivery of the Super Gym

• Advantage

Kiddie land could do its own deliveries saving the company some money

• Disadvantage

Bumpers on the newest autos cannot accommodate trailer hitches.

2. Advantages and disadvantages of using local trucking companies deliver from the retail stores to the customer

• Advantage

According to market research 85% of the customers drive less than 25 minutes to the store, so with the flat rate of $40 per shipment it would be cheaper to deliver for the company.

• Disadvantage

Local companies that were found prefer deliveries twice a week but not daily.

3. Advantages and disadvantages of stocking Super Gym at the distribution center and having the truck make deliveries to the retail stores also make deliveries to customers

• Advantages

Consolidator-Ship more than one delivery to the retailer or customer equals fewer trips.

• Disadvantages

Burning too much fuel with double deliveries to distribution center then retailer stores

Squeezing an 18 wheeler into a subdivision would not make any sense

Knocking down a couple of mail boxes and

Truck tracks in some homeowner lawns.

4. Advantages and Disadvantages of charging customers for home delivery if unable to carry

• Advantage

Charging customers for delivery would absorb the cost of $40 for delivery per set.

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