One of their large and new customers came to management complaining that their p

One of their large and new customers came to management complaining that their prices are too high. They claimed that this is due to high distribution costs. After some analysis the client found this to be true. We have been asked to figure out how we can decrease distribution costs. Freight Calculation Everyday Months Seasonal and Everyday Months Everyday Months Seasonal and Everyday Months
UPS Zone Number of Freight Price per Box Boxes Shipped Total Cost Per Boxes Shipped Total Cost Per
Stores Per Month Month Per Month Month
1 1 3 200 600 800 2400
2 1 4 200 800 800 3200
3 1 5 200 1000 800 4000
4 1 6 200 1200 800 4800
5 1 7 200 1400 800 5600
THE CASE STUDYOur client is a manufacturer of party goods. They have two product portfolios: everyday and seasonal. Everyday products pertain to occasions that happen throughout the year such as birthdays and anniversaries. Seasonal goods are for occasions such as the 4th of July or Thanksgiving. They have a design facility that comes out with different party themes and takes care of licensing for goods using characters like Mickey Mouse or Shrek. They also have a manufacturing and distribution facility and a sales force that provides support to retailers. One of their large and new customers came to management complaining that their prices are too high. They claimed that this is due to high distribution costs. After some analysis the client found this to be true. We have been asked to figure out how we can decrease distribution costs. Freight Calculation Everyday Months Seasonal and Everyday Months Everyday Months
Seasonal and Everyday Months
UPS Zone
Number of
Freight Price per Box
Boxes Shipped
Total Cost Per
Boxes Shipped
Total Cost Per
Stores
Per Month
Month
Per Month
Month
1
1
3
200
600
800
2400
2
1
4
200
800
800
3200
3
1
5
200
1000
800
4000
4
1
6
200
1200
800
4800
5
1
7
200
1400
800
5600
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