What are cost implications if the company explores the option of producing in-house and selling direct to retailers and repair shops.

Beat may want to eliminate the distributor and sell directly to the retailers and repair shops. Beta would charge the customer the MSRP. Selling direct to retailers and repair shops offers an opportunity to improved gross margins, but there are additional costs for shipping the parts to the retailers and repair parts. SCM and strategic logistics management must develop a 3PL providers that can deliver the parts for $1 per pound on average regardless of locations across the U.S. The good news is that a 20-pound carton fits within the normal cost parameters of 3PL providers. Table 1 provides the rates, the expected distribution shipments Fraction of total by distance). Determine the cost implications if the company explores the option of producing in-house and selling direct to retailers and repair shops.