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A retail company has a large supply chain. Many steps are required to get items to the shelves of the retail stores. One of the
A retail company has a large supply chain. Many steps are required to get items to the shelves of the retail stores. One of the last steps is a delivery of items from the company's distribution centers to the stores. On-time deliveries are critical to the store's ability to maintain its inventory and generate good results for the business. The retail company contracts with a trucking company (A) for these deliveries. The retail company can track each truck to see if its delivery was on time or not. Historically, company A has performed reasonably well in terms of delivering these shipments on time. However, the retail company recently received a bid from an alternative trucking company (B). This new competitor offers similar prices but promises improved on-time delivery performance. The retail company is considering whether to switch from company A to company B for its deliveries from the distribution centers to the stores
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