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Contemporary Logistics, Paul R. Murphy - Case Study 7 - HANDY ANDY, INC.

MBA Logistics and SCM

LOGISTICS, GLOBAL LOGISTICS, SUPPLY CHAIN MANAGEMENT 2016

Test Bank, Discussion, Case study guides and Online Resources (2016)

Logistis, Global Logistics, International Logistics, Supply Chain Management

 

 

CASE SOLUTIONS

 

CASE 7-1 HANDY ANDY, INC.

 

Question 1: Is this a customer service problem? Why or why not?

 

The chapter defines customer service as the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.  While there doesn’t appear to be much of a customer service problem with the product itself (i.e., the compactors seem to perform well), there do seem to be some problems with respect to product-related attributes such as installation and post-sale support, particularly on the part of the licensed retailers.  More specifically, the licensed retailers regularly missed delivery windows, which falls into the dependability area of customer service.  In addition, some installation personnel didn’t do a very good job of communicating with certain customers.

 

Question 2: It appears that the factory distributors are exploiting the smaller dealers. Yet from what we can tell, Handy Andy in St. Louis has heard no complaints from the smaller dealers. Why would they not complain?

 

The smaller dealers might not complain because they are so dependent on the factory distributors for product.  Complaining about factory distributors might result in some distributors “punishing” the complaining dealers, perhaps by being slow to process orders, slow to pick and ship orders, and / or slow to deliver orders.

 

 

Question 3: What should Handy Andy’s marketing Vice President do? Why?

 

Bixby is faced with multiple issues, namely, distributors exploiting licensed retailers as well as inconsistent performance by the licensed retailers.  Can both issues be addressed simultaneously?  If not, then Bixby needs to decide which issue to address first.  Because organizations can’t exist without customers, it can be argued that Bixby should first work on the inconsistent performance by the licensed retailers.  The problem may be more complicated than the text indicates because the dealers and factory distributors likely market other lines of appliances produced by other manufacturers. So the focus may be on the marketing arrangements for all types of appliances, not just Handy Andy compactors.

 

Question 4: In the case is the statement, “The factory distributors in these few cities indicated that they, not Handy Andy, Inc., stood behind the 1-year warranty.” Is this a problem for Handy Andy? Why or why not?

 

In today’s business environment, which emphasizes clear, consistent, and compelling messages from seller to buyer, this might be a problem for Handy Andy.  For example, a buyer might be confused (i.e., lack of clarity) about whether Handy Andy or the factory distributor is standing behind the product—or are both Handy Andy and the factory distributor standing behind the product.  Alternatively, might a buyer perceive that the factory distributor is offering a service (1-year warranty) that Handy Andy is unwilling or unable to provide (i.e., not compelling)?

 

Question 5: Bixby, Booher, and Ortega recognize that Handy Andy needs a better way to learn about the buyer’s installation experience.  One alternative is to add an open-ended question, dealing with the installation experience, to the warranty activation form.  Another alternative is to e-mail a brief survey about the installation experience within three to five days of receiving a warranty activation form.  Which of these should Handy Andy choose?  Why?

 

There are pros and cons to both alternatives.  One advantage to adding an open-ended question to the warranty might be that the one question isn’t likely to keep people from returning the warranty form.  One disadvantage is that open-ended questions can be difficult to analyze because someone(s) is needed to classify the responses.  One advantage to the brief survey is that Handy Andy might be able to collect more, as well as more uniform, data than with one open-ended question.  Alternatively, the e-mail survey isn’t likely to be completed and returned by all potential respondents.

 

Question 6:  Discuss the pros and cons of allowing Handy Andy trash compactors to be sold only through licensed retailers (i.e., factory distributors would no longer be able to sell to the consumers).

 

An initial issue that might be discussed involves determining the pros and cons from which party’s perspective.  For example, the licensed retailers are likely to have a different set of pros and cons than the factory distributors.  At a minimum, allowing sales only through licensed retailers would likely reduce, if not eliminate, the factory distributors’ exploitation of the retailers—which the retailers should really like.  However, allowing sales only through licensed retailers likely will reduce the sales potential of the factory distributors—and what might these distributors do to recover the lost sales?  Would some distributors choose to altogether eliminate the Handy Andy brand?  If so, how quickly—if at all—would Handy Andy be able to add new factory distributors?

 

Question 7:  Is it too late for Handy Andy to attempt service recovery with customers who reported a less-than-satisfactory installation experience?  Why or why not?

 

The chapter defines service recovery as a process for returning a customer to a state of satisfaction after a service or product has failed to live up to expectations, and also indicates that there is no set formula for service recovery.  There is no right or wrong answer to Question 7, and answers are likely to reflect a student’s opinion on how far a company should go to satisfy customers who have experienced a service failure of some type.  For example, one argument is that Handy Andy might be better off not attempting service recovery in the sense that the company’s efforts might rekindle unpleasant memories for some customers.  An alternative argument is that it’s never too late to attempt service recovery—even if it rekindles unpleasant memories—because superior service recovery can result in increased customer loyalty.

 

 

 

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Free Online LOGISTICS, GLOBAL LOGISTICS AND INTERNATIONAL LOGISTICS MANAGEMENT

Learning marterial and resources for courses in:

1. See full list of videos: Link

2. Free Logistics, Global Logistics, International Logistics - 2016 Ebooks (free download)

GLOBAL LOGISTICS MANAGEMENT, A Competitive Advantage for the 21st Century, 2nd Edition, 2006, Kent N. Gourdin - Link download free 

INTERNATIONAL LOGISTICS AND SUPPLY MANAGEMENT, Allan Carrol, 2016 - Link download free

Logistics & Supply Chain Management, 4th Edition, 2011, Martin Christopher, Prentice Hall - Link download free

Logistics Management, 2012, David B. Grant, Prentice Hall - Link download free

The Supply Chain Management Casebook, Comprehensive Coverage and Best Practices in SCM, 2013, Chuck Munson Link download free

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Logistics & Supply Chain Management, 5th Edition, 2016, Martin Christopher, Prentice Hall
Contemporary Logistics, 11th Edition, 2015, Paul R. Murphy, A. Michael Knemeyer
Production and Logistics in Meeting, Expositions, Events and Conventions, 2015, George G. Fenich
Supply Chain and Logistics Management Made Easy: Methods and Applications for Planning, Operations, Integration, Control and Improvement, and Network Design, 2015, Paul A. Myerson

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The world merchant fleet in 2014 Statistics from Equasis - Link download free
Review of MaRitime Transport, 2015 - Link download free

3. Website and All articles about Logistics, Global Logistics, International Logistics and Supply Chain Management

http://top20mba.com 

4. Case Study Guides

5. Link to power point slides (Free Download)

Contemporary Logistics, 11th Edition, 2015, Paul R. Murphy, A. Michael Knemeyer

Murphy - Link download free

Production and Logistics in Meeting, Expositions, Events and Conventions, 2015, George G. Fenich

Fenich  - Link download free

6. Test Bank - Free download

Murphy 2015 - link

Fenich - link 

Murphy 2016 - link 

 

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2018

Contemporary Logistics, 12th Edition, Paul R. Murphy, 2018
Part I: An Overview of Logistics
1. An Overview of Logistics
2. Logistics and Information Technology
3. Strategic and Financial Logistics
4. Organizational and Managerial Issues in Logistics
Part II: Supply Chain Management
5. The Supply Chain Management Concept
6. Procurement
Part III: Elements of Logistics Systems
7. Demand Management, Ordered Management, and Customer Service
8. Inventory Management
9. Facility Location
10. Warehousing Management
11. Packaging and Materials Handling
12. Transportation
13. Transportation Management
14. International Logistics

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