1: Assume that Cheezy Wheezy goes into the catalog order business. What policy should it adopt for handling stockouts—that is, what should the company do when it receives mail orders that it cannot completely fill because one or more of the desired items are out of stock?
There are a variety of policies Cheezy wheezy could make to handle stockouts. One option could be to take down the email addresses and phone numbers of all mail order forms so they can contact customers to let them know that their desired item is out of stock in a timely manner. They also could carry extra inventory known as safety stocks to compensate for low inventory and increased sales on merchandise.

2. Some mail customers will complain that the items Cheezy Wheezy shipped never arrived. What policy should Cheezy Wheezy adopt to deal with this? Cheezy Wheezy should make a valuable effort to focus on the customer and make sure they are satisfied at all times. To handle customer problems they should have something where they can record all customer complaints so they can minimize any issues the customers are having and also know who is being truthful about package not arriving. Cheezy Wheezy should also make sure that they require all mail orders to have a signature upon arrival so they can track who received their packages and the date and time they received them.

3. Should the order form, which will be stapled into the center of the catalog and will be addressed to Cheezy Wheezy, be of the postage-paid type, which means that Cheezy Wheezy will pay the first-class postage rate plus a few cents on each envelope delivered to it, or should the customer be expected to add a first-class stamp to the order before he or she mails it? Discuss.
Cheezy Wheezy should definitely pay for the postage being that customers are going to shop elsewhere because they will have to spend more money just place a order. By paying the postage it may attract more consumers and also make the customer feel valued causing the customer not to find business elsewhere. Paying the postage stamp will also speed up the process of orders being shipped more quickly.

4. Cheezy Wheezy’s headquarters are in New Glarus, but the company also operates in southern Wisconsin and northern Illinois. Is New Glarus the best address to use for receiving mail orders for cheese? Might there be advantages, perhaps, in having the mail addressed to a more major city—say, Madison, Milwaukee, or Chicago? Discuss.
No major cities would receive their mail quicker and are more familiar with the customer. Many consumers possibly have not ever heard of New Glarus and would be reluctant to send to address unfamiliar. However the major cities which are more known to the consumer may make the customer feel at ease about sending mail orders there rather than New Glarus.

5. From the facts that have been presented in the case, how would you handle the matter of charging for the packaging costs of each shipment? Why? I would move up to larger cartons being that it would only be a few cents extra to ship the packages. The shipments of smaller packages is costing cheesy wheezy a lot of money, by getting larger cartons it can reduce cost by having one package sent rather than the two packages sent that is equally the same size of the larger package.

6. How would you handle the matter of charging for the transportation costs of each shipment? Why?
For Transportation cost I would charge by the weight and the distance it cost to send each shipment. For customers that are far away I would charge extra to compensate for the extra charges occurred for long distance carriers.