homework case1-1 - Questions 1 List and discuss the advantages and disadvantages of purchasing a two-wheeled trailer for each store to use for

homework case1-1 - Questions 1 List and discuss the...

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Questions1 List and discuss the advantages and disadvantages of purchasing a two-wheeled trailer for each store to use for delivering Super Gyms.The advantage of purchasing a two-wheeled trailer for each store are that they can control the delivery time for each customer. Disadvantages are that the company need to purchase the trailer and they can’t guarantee that they could sell enough to gain more gross margin and they also need to pay the insurance and an adequate selection of bumper hitches, there would have some labor costs also which are expensive.2 List and discuss the advantages and disadvantages of having local trucking companies deliver the Super Gym from the retail stores to the customers.The advantage is that the fee is not too high (if the trucking company charge $40 one time) compared to the first option, but the disadvantage is that they can only deliver twice weekly notdaily which means they can’t guarantee the delivery time.

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