Frito-Lay, Inc.: The Backhaul Decision Case Solution & Answer

Frito-Lay, Inc.: The Backhaul Decision Case Solution

This Case is about MARKETING, OPERATIONS MANAGEMENT, REGULATION

PUBLICATION DATE: April 08, 1988

Prior to the Motor Provider Act of 1980, business with personal trucking squadrons were typically restricted from offering transport services to other firms. The deregulation for the transportation market in 1980 enabled personal providers to provide for-hire transport services. In 1983, as component of an initiative to balance out the increase in their circulation expenses, Frito-Lay thinks about offering miles on its own backhaul lanes to various other businesses. Frito-Lay administration should think about whether the possible incomes from such services necessitate the possible deterioration of service to Frito-Lay’s sales pressure. A marketing strategy for the transport services should be established if the backhaul proposition is authorized.

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