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Joe Rutner Essay Topics & Paper Examples

Cost of delivery

1. The chain stores’ request to reduce cycle time by shipping directly to the stores would seriously affect the service model and delivery costs for BKI. Because, the proposed model would mean that BKI would have to process more number of deliveries in smaller quantities and transport them separately to each store. Cost of delivery will increase due to smaller quantities to be delivered directly to stores resulting in more trips, farther distances and lower economies of scale. This is in complete contrast to the more structured and systematic current model of weekly deliveries of standard quantities to the stores’ warehouses. 2. In my opinion, Joe Rutner’s proposal of establishing a set of six company-owned facilities to act as regional…