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The performance of the Toronto depot versus the performance of the Scarborough depot According to the case, the cost of delivery from the Toronto depot was significantly lower than Scarborough depot for both typical (by 19.5%) and rush order (by 33.2%) deliveries. So, cost-wise Scarborough operation was more expensive than Toronto. There could be a few reasons to the underperformance of Scarborough that the management needs to consider. Firstly, as mentioned in the case, the inventory order was placed by the technician. The order was procured from the depot to which the technician belonged and not from the depot close to the customer site. This was probably done to allocate the total cost incurred in a call, both servicing cost and parts expenses, to a specific depot. Given this scenario, it is possible that a large number orders placed from customer sites in Scarborough are actually procured from depots in other cities...

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