LSM 815

automobiles
• Most dealers have a traditional pattern of holding large &
costly inventories of cars to meet customer requests for
different options & colours.
• Ex. Ford held cars in a regional inventory pool with
enough variety of colours and options. Dealers can draw
on these pool to meet customer requests. It reduces cost
of dealer inventory, but increase total distribution cost for
manufacturer. ac u It requires es the customer to wait for a
couple of days for the vehicle.
• Customer may order directly to the production schedule
over the web. But he has to wait for delivery.
• New vehicle sales are not the major source of profit for
dealers. Care service and leasing are more profitable.