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3sp 3sp
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3 years ago
Question 1: List and discuss the advantages and disadvantages of purchasing a two-wheeled trailer for each store to use for delivering Super Gyms.

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

Question 3: List and discuss the advantages and disadvantages of stocking Super Gyms at the distribution centers and then having the truck that makes deliveries from the distribution center to the retail stores also make deliveries of Super Gyms to individual customers.

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

Question 5: Which alternative would you prefer? Why?

Question 6: Draft a brief statement (catalog copy) to be inserted in the firm’s spring/summer brochure that clearly explains to the potential customers the policy that is recommended in Question 5.

Question 7: In the first meeting, A.J. asked about SUVs but there was no further mention of them. How would you follow up on his query?
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einsteineinstein
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3 years ago
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Question 1: List and discuss the advantages and disadvantages of purchasing a two-wheeled trailer for each store to use for delivering Super Gyms.

Because the stores are in a number of states, one would have to check the motor vehicle and insurance requirements of each state. 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 delivery. Also, once at the site, the store’s employees might be asked to assist in the assembly of the gym.

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

There are probably no disadvantages to using a local trucking company to make the delivery. A decision would have to be made how to handle the trucking firm’s charges.

Question 3: List and discuss the advantages and disadvantages of stocking Super Gyms at the distribution centers and then having the truck that makes deliveries from the distribution center to the retail stores also make deliveries of Super Gyms to individual customers.

The problem here focuses on the size of equipment; large tractor-trailer combinations are not suited to making home deliveries. The actual costs to KiddieLand of using trucks this way might be very high. There might be some savings in inventory costs by stocking the gyms at the distribution center rather than at each retail store.

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

Perhaps the one advantage to charging for home delivery is that KiddieLand recoups the associated costs. However, because charged home delivery will add to the customer’s total purchase price, there could be a reduction in demand or this could generate customer dissatisfaction.

Question 5: Which alternative would you prefer? Why?

The student can choose any alternative. However, the text of the case seems to prefer the use of a local trucking company and charging the customer for home delivery.

Question 6: Draft a brief statement (catalog copy) to be inserted in the firm’s spring/summer brochure that clearly explains to the potential customers the policy that is recommended in Question 5.

The brochure is intended for use in all stores, so whatever copy is prepared must be widely applicable. A sentence might read: “The Super Gym comes unassembled and is packed in three boxes: one weighing ____ pounds, is ____ inches by ____ inches by ____ inches; the second weighs ____ pounds, is ____ inches by ____ inches by ____ inches; and the third weighs ____ pounds, and is ____ inches by ____ inches by ____ inches. Assembly requires the following tools: ____; ____; ____; and ____.”

Question 7: In the first meeting, A.J. asked about SUVs but there was no further mention of them. How would you follow up on his query?

 Anyone in the group could answer that sport utility vehicles have more carrying capacity than autos and many also have trailer-hitches. SUVs are sufficiently popular—particularly in the United States—that many buyers of the Super Gym equipment would either have a SUV, or be able to borrow one.

This verified answer contains over 580 words.
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