For years, Dell was known for selling its computer directly to the consumer. Then it started selling them at Walmart and Best Buy. A classmate contends," Selling through a middleman is only going to squeeze margins as the retailers demand lower prices. Besides the retailers have to make a profit for themselves." Isn't this clear evidence that a direct supply chain is always the best way to reach a consumer? Agree or disagree and explain your reasoning.

You are a manufacturer of a popular consumer product that is sold through independent retailers and some department store chains. Today, a large big box chain approaches you and wants to carry out your line. What should you do? How will this affect your relationship with your current retailers?