Contemporary Logistics

Adam Gowin

1) Q: List and discuss the advantages and disadvantages of purchasing a two-wheeler trailer for each store to use for delivering Super Gyms.

A: Advantages

They can use other things to distribute other than the SuperGym in the trailers, saving money. Rent out the trailers when not in use for extra money.

Disadvantages

Expensive upkeep. High delivery costs. Parking space. Insurance.

2) Q: List and discuss the advantages and disadvantages of having local trucking companies deliver the Super Gym from the retail stores to the customers.

A: Advantages

No initial money spent. Low cost of distribution for most people because of proximity.

Disadvantages

Price spike or drop because of the economy. May only get a couple of days a week for delivery so they may not be made on the date of purchase.

3) Q: List and discuss the advantages and disadvantages of stocking Super Gyms at the distribution centers, and then having the trucks that make deliveries from the distribution centers to retail stores also make delivers of Super Gyms to individual customers.

A: Advantages

Transportation costs are reduced because the same trucks can make multiple deliveries. Reduced inventory at retail stores as well.

Disadvantages

Inventory costs will be high at the distribution centers as well as big rigs on smaller streets do not mix well.

4) Q: List and discuss the advantages and disadvantages of charging customers for home delivery if they are unable to carry the Super Gym home.

A: Advantages

Customers can get the product sent to their homes, no need to pick up themselves. Cutting costs by offloading at the customers home instead of multiple drop offs from warehouse to warehouse.

Disadvantages

Too expensive to deliver which may spread by word of mouth and affect sales.

5) Q: Which alternative would you prefer? Why?

A: I would choose the 4th alternative, Charge for delivery if the...