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Eric is a delivery driver for Preferred Package Services (PPS) and has been for 20 years. Each day Eric drives to the PPS terminal to pick up packages and is given a route to deliver the packages. He is told in what order to deliver the packages and which route to take and is compensated based on the total weight of all the packages. While Eric owns the delivery vehicle, he is required to purchase the vehicle from PPS. To ensure all vehicles are up to the PPS standard, all drivers are required to use the PPS maintenance shop for repair, mandatory upgrades, and periodic inspections. While Eric is financially responsible for all costs associated with the vehicle including fuel, maintenance, licensing and insurance, he is precluded from using the vehicle for any purpose other than delivering PPS packages.

PPS provides Eric with a uniform he is required to wear while delivering packages on his route. Recently, PPS required Eric to purchase a GPS system for his delivery vehicle. The GPS is used to increase efficiency and track the delivery vehicle to provide delivery customers with to-the-minute tracking on packages along with a specified delivery time within a five-minute window. Eric’s performance is measured, in part, by packages being delivered within the five-minute window. Poor performance could result in Eric receiving a “lighter” route or PPS not renewing his contract.

Eric is a star driver. Because he is so successful, PPS decides to offer Eric an expansion of his current route. The newly expanded route will require Eric to hire another driver and purchase an additional delivery vehicle. Eric jumps at the chance and accepts the offer to expand his route.

PPS had the perfect candidate to drive on Eric’s expanded route, Jimmy. Eric agreed and offered Jimmy the job. Jimmy adjusted quite well to his new role as a PPS driver. Prompt in delivering packages, PPS often received unsolicited compliments regarding Jimmy from delighted PPS delivery customers. “He is always so happy,” one customer praised.

Everything was going swimmingly until one day while delivering his route, Jimmy digressed ever so slightly from his route. With traffic light, Jimmy had a few minutes to spare before the five-minute window for his next delivery at Andy’s Anvil Emporium. Jimmy went into the bank next to Andy’s to make a withdrawal from his personal checking account. While backing out, Jimmy was setting the GPS system to note his delivery to Andy’s. Unaware of his surroundings, Jimmy backed into Zoe Phillips causing her bodily injury.

Upon investigation, Jimmy was found to be under the influence of alcohol. Shocked at the news, Eric later learned that Jimmy had been cited three times in the last six months for driving under the influence and was driving on a suspended license.

Fully discuss. Include options for Zoe to recover for her injuries.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92589526

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