The vice-president and general manager of Totalline Transport wants to eliminate late appointment fees in delivering to one of Canada's premier electronic shops--Electronics International. Suppliers of electronics goods hire Totalline Transport to deliver to retailers. The vice-president sees an opportunity to solve the problem of congestion in the parking lot of Electronics International's warehouse and eliminate unnecessary soft costs such as missed appointment fees and detention charges. The bottleneck in the process is the waiting time for all of the trucks to unload. If the carrier arrives late, the retailer charges the carrier $1,000. If the carrier is waiting in line due to a backlog at the warehouse, the carrier levies a charge of $50 to $60 per hour. Beyond these costs, the vice-president realizes that suppliers and retailers are spending one day per week investigating problems with shipments. He is eager to make his customers (suppliers) successful. He sees three central options in cutting down traffic: to request two dedicated doors at the warehouse; cut down on time for Electronics International by applying stickers at Totalline's consolidation point on all deliveries, allowing Electronics International to accept shipments immediately into inventory without handling; or deliver direct to Electronics International stores.
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