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Consider the emerging business practices of guaranteed delivery by e-commerce companies. Recently, more web-based companies or companies' e-commerce channels begin to provide premium, guaranteed delivery services for customers. Examples include Amazon's Prime program and retailers' over-night delivery during holidays. Do these delivery strategies have different supply chain structures as compared to regular delivery services? Explain why and why not. Also, discuss how e-commerce companies need to do in terms of supply chain coordination and infrastructure investments to make these strategies work. Finally, discuss will these practices result in profitability.
Chelsea Truman sells celebrity magazines on Sunday morning in an area surrounded by three busy shopping centers. Demand for the magazines is distributed as shown in the following table:
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