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CASE STUDY: KENDALL CRAB ANDLOBSTER,INC Case Outline What--Event: A fall storm was rapidly moving toward Boston, and it may impact the local air transportation. Jeff Daniels,director of Overnight Delivery Operation at Kendall Crab and Lobster,INC., is the facing a choice of whether how to deliver ordered lobsters--the companys core business. Lobsters are so perishable that they must be delivered to customers in short time. Quick Decision is a MUST. Jeff decided to apply the decision tree methodology and make a optimal decision analysis. Who--Role: Kendall Crab and Lobster,INC:A crab and lobster wholesale and delivery company which win market by great customer service and high quality delivery. When--Environment: 1. United Express Overnight Delivery(UEOD):STD delivery. $20 per lobster in total. 2. Massachusetts Air Freight(MAF):As assistance to STD option in the case when Logan Airport is closed. Additional cost was $13 per lobster in roughly 67% of the times $19 per lobster in the remaining 33%. 3. Easten Parcel Delivery(EPD): Alternative whole-course option. Additional cost on top of STD delivery: $4 in 50% times $3 in 25% times $2 in the remaining 25%. Why—Choice If KCL is not able to deliver a customer’s lobster,the KCL policy indicates to give customer a $20 discount coupon and pay for an increment cost. Decision Tree B Use EPD immediately Not use EPD wait until 5 PM B Use EPD immediately Not use EPD wait until 5 PM C 50% +$6 25% +$7 25% +$8 B D Use United Express +$10 Storm Not hit Boston Storm hit Boston Use EPD immediately Not use EPD wait until 5 PM C 50% +$6 25% +$7 25% +$8 50% 50% B D E Airport Closed Airport Not Closed Use United Express +$10 Use United Express +$10 Storm Not hit Boston Storm hit Boston Use EPD immediately Not use EPD wait until 5 PM C 50% +$6 25% +$7 25% +$8 50% 50% 20% 80% B D E F 70% -$21.5 Cancel order Use MAF Airport Closed Airport Not Closed Use United Express +$10 Use United Express +$10 Storm Not hit Boston Sto
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