Answer the questions based on scenario below based on knowledge of distribution strategies: Identify the major physical distribution problem(s) and Make specific suggestions about how you might improve the strategy. State any assumptions that you think are important to your recommendation. In your answer, be sure to show that you understand the various concepts—including the different storing and transporting alternatives discussed in the text. Keep in mind that there may be more than one correct answer in each situation. The solution will depend, in part, on your creativity!

Scenario #1 Circle City Bakeries makes a variety of sugar‑free cookies that are sold by several large supermarket chains in the Midwest. Data from the stores' checkout computers is automatically linked to the Circle City Bakeries in Chicago so that each day's production run, and the shipments to each store, can exactly match the assortment needed to refill each store's display. This reduces inventory costs and also results in fresh cookies. While studying sales figures, the Circle City Bakeries marketing manager noticed that during the previous two months there had been no sales of Almond cookies at one store. On investigation, the manager discovered that a case of Almond cookies were crushed in transit. The shattered cookies-clearly visible through their plastic bags‑­had been placed on the rack by a stock clerk. Because no customers were buying the damaged cookies, none passed through the checkout scanners, and no replacements were ordered Scenario #2 Above & Beyond Designs is the second largest producer of high quality coated fabrics used for outdoor awnings for fine homes, restaurants, and hotels, and in other applications as wells as for boat covers. Above & Beyond Designs sells fabric directly to the thousands of awning fabricators who serve customers in their local markets. Once a consumer selects a fabric from a sample and tells a fabricator what to make, the fabricator calls the regional Above & Beyond Designs sales rep and places an order. Each week's orders are then processed through the home office and the bulky fabric is shipped by truck to the fabricator from either the company's east coast or west coast warehouse. This approach reduces transportation costs and makes it easier to manage the inventory in the warehouse. Although many fabricators are loyal to Above & Beyond Designs fabric, a new competitor from Europe has been taking a share of the market, apparently in large part because it is able to fill orders within a week rather than the three weeks it takes, on average, for Above & Beyond Designs. The Above & Beyond Designs marketing manager does not expect the new competitor to be able to survive, however, because its delivered prices are about 10 percent higher.