Groups $5$ & $10$ & $15$

$$ Calculate expenses $($cost to serve$)$ and estimated profits$/$month of distributor if the distributor does not operate vans in van

markets and build own infrastructure in those van markets; e$.$g$.$ the distributor will cover all $429$ outlets by:

$1.$ Renting three small warehouses in these van markets $($average rentals $7000/-)$ but the original warehouse

requirement will be $70\%$ of the initial space

$2.$ Three Warehouse Manager cum Sales Person salary $25000/-$ per month for each

$3.$ Three deliverymen salary $17000/-$ per month for each. No driver, fuel or van costs as the deliverymen will deliver the

stocks in handcarts

$4.$ As this is Distributor$$s own infrastructure distributor doesn$$t give any discount to anyone, hence no reimbursement.

$$ What are the advantages and disadvantages of the distributor and company with this route$-$to$-$market model?