LOG 110 Kiddieland Chapter 3 Case 2
Case Number 1.1 - Kiddieland and the Super Gym
Overview
A logistics manager of the toy company Kiddieland is faced with a major logistical problem: how to deliver a new large product from the stores to the customer and still have profitable margins. This issue needs to be resolved in the most sensible and quickest way possible because this product will launch in the next few months.
Case Questions
1. An advantage of purchasing a two-wheeled trailer for each store to us for delivering Super Gyms is that each store would be in control of delivering this product. If something were to happen to somebody trying to get this large product home, they may try to make the company liable for damages or injury. Another advantage would be the ease of mind for customers facing the problem of getting this product home. Not having a delivery service for such a large product could be the difference in interested buyers. The number one disadvantage of this idea is labor cost. Being that the product is so massive, it would probably take two employees to deliver this product, and if they are expected to help set the super gym up, it would probably take a good amount of time.
2. The disadvantage of getting a local trucking company to deliver from the retail stores to the customer would be cost. It is possible that it would be much more expensive to pay a company for this than creating a delivery service in-house.
3. These trucks are not meant to be making deliveries to subdivisions. As stated in the case, these trucks usually damage mailboxes and leave truck tracks in homeowners lawns. This would probably cause many customers to think negatively of the service. These trucks also take much more money to operate than regular-size delivery vehicles, so this could be costly. Stocking super gyms at the distribution centers is a positive idea. Distribution centers have much more room for larger items like this, which could save money in inventory costs. Also, real estate of these stores
Overview
A logistics manager of the toy company Kiddieland is faced with a major logistical problem: how to deliver a new large product from the stores to the customer and still have profitable margins. This issue needs to be resolved in the most sensible and quickest way possible because this product will launch in the next few months.
Case Questions
1. An advantage of purchasing a two-wheeled trailer for each store to us for delivering Super Gyms is that each store would be in control of delivering this product. If something were to happen to somebody trying to get this large product home, they may try to make the company liable for damages or injury. Another advantage would be the ease of mind for customers facing the problem of getting this product home. Not having a delivery service for such a large product could be the difference in interested buyers. The number one disadvantage of this idea is labor cost. Being that the product is so massive, it would probably take two employees to deliver this product, and if they are expected to help set the super gym up, it would probably take a good amount of time.
2. The disadvantage of getting a local trucking company to deliver from the retail stores to the customer would be cost. It is possible that it would be much more expensive to pay a company for this than creating a delivery service in-house.
3. These trucks are not meant to be making deliveries to subdivisions. As stated in the case, these trucks usually damage mailboxes and leave truck tracks in homeowners lawns. This would probably cause many customers to think negatively of the service. These trucks also take much more money to operate than regular-size delivery vehicles, so this could be costly. Stocking super gyms at the distribution centers is a positive idea. Distribution centers have much more room for larger items like this, which could save money in inventory costs. Also, real estate of these stores