Which route can serve the pilot stores?
Compare delivery costs with the service each route can provide.
The question
A fictional food supplier in India will serve 60 independent neighborhood shops. The pilot requires a delivery each week to every store. With weekly delivery to all stores, the forecast is 1,200 cases per month. Supplier contribution before route costs is ₹70 per case.
| Fixed cost per month (₹) | Cost per case (₹) | |
|---|---|---|
| Direct delivery | 42000 | 18 |
| Distributor | 0 | 42 |
Direct delivery can serve all stores. The distributor has yet to confirm weekly reach.
“Which route would you start with? State what the coverage requirement costs.”
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A strong answer, step by step
Open each step in turn. This is one strong answer, not the only one.
Step 1: What makes a route feasible?
What would you do here? Open the move you’d make.
Choose the lowest variable cost per case.
Tempting, but it misses something. Fixed costs and route reach also matter.
Check that the route can make weekly deliveries to all 60 stores.
The strong move. This tests the stated service requirement.
Choose the quote with no fixed charge.
Tempting, but it misses something. The quote gives no evidence of store reach.
See how a strong candidate says it
“Each pilot store needs a delivery each week. Check store coverage and cadence before choosing a route on contribution.”
Why it works: A route quote describes costs under its terms. It does not confirm service to every shop.
Step 2: What would equal coverage earn?
What would you do here? Open the move you’d make.
Give the direct route the lead because ₹18 is less than ₹42.
Tempting, but it misses something. The monthly fixed charge changes the comparison.
Treat the 1,200 cases as confirmed distributor sales.
Tempting, but it misses something. The case states a forecast at full coverage. The distributor’s reach is open.
Compare the two totals at 1,200 cases and keep the coverage condition.
The strong move. This gives a conditional comparison before the route check.
See how a strong candidate says it
“Direct yields ₹20,400 per month at 1,200 cases. At the same volume and coverage the distributor yields ₹33,600, or ₹13,200 more.”
Why it works: Multiply volume by the contribution after variable route cost, then subtract the fixed route cost.
Step 3: Which route meets the brief now?
The distributor can deliver weekly to 40 stores. The other 20 account for 300 cases per month and would place no orders with a distributor-only route. The direct route and its costs stay as quoted.
What would you do here? Open the move you’d make.
Choose direct and state the cost of serving all 60 stores.
The strong move. This gives the feasible route and the contribution trade-off.
Choose the distributor because its total is higher.
Tempting, but it misses something. It leaves 20 pilot stores without the required weekly delivery.
Assume a split keeps the distributor’s rate and removes direct fixed cost.
Tempting, but it misses something. No terms for a split are given.
See how a strong candidate says it
“Start direct. The distributor earns ₹25,200 on 900 cases but misses 20 stores. Direct earns ₹20,400. Full coverage costs ₹4,800 in monthly contribution against that limited option.”
Why it works: Direct is the stated route that meets the service condition. Compare with what the distributor can serve now.
Step 4: What should you check in the pilot?
What would you do here? Open the move you’d make.
Count cases shipped and stop tracking store visits.
Tempting, but it misses something. The same total volume can hide missed pilot stores.
Check visits, actual volume and cost before switching.
The strong move. This checks service and contribution on the same store set.
Give each route half the stores without another quote.
Tempting, but it misses something. The cost and cadence of that split are unknown.
See how a strong candidate says it
“Check completed weekly deliveries by store and actual case volume. Cost a different distributor route or a split if it can meet the same service requirement.”
Why it works: A route change needs verified reach and a full cost comparison.
The answer, in short
- Decision
- Start direct under the full-coverage requirement.
- Because
- It delivers weekly to every pilot shop at a known contribution cost.
- What would change it
- A verified distributor or split route that serves all 60 and earns more.
Common traps
- Ignoring the fixed cost.
- Choosing a cheaper route that cannot serve the pilot.
Check your answer
- How many stores must receive a weekly delivery?
- What does each route earn at equal coverage?
- What changed when the route was confirmed?
- What would justify a switch?
Last reviewed Nov 11, 2026