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Kings SAS Pty Ltd has a long-established and mutually beneficial business relationship with a major international automotive parts company, Brock Technologies. Management at Brock has approached Kings with a request to provide additional routes that are important to the efficiency of its supply chain. Kings’ management wishes to nurture the business relationship with Brock but is concerned about the available capacity to service the new routes, potential risks, and profitability associated with Brock’s request.
Alan James founded Kings SAS Pty Ltd in 1968 and has grown the business into a sizable operation with 90 trucks and 180 trailers. His largest customer, Brock Technologies, has submitted a proposal to him to add delivery routes that would improve the efficiency of Brock’s supply chain. Alan was not certain that Kings could handle the additional routes since the company currently was operating at (or near) full capacity View Complete Case Study Here...