What’s Now? Chapter 11 – Drones deliver medicine in Rwanda

Silicon Valley startup Zipline is delivering blood and emergency medicine to rural areas of Rwanda. You can learn more about Zipline in the YouTube video below.

Review the discussion of Exhibit 11-2. Estimate how Zipline’s drone delivery effects inventory cost, cost of lost sales, and transportation costs as compared to possibly shipping supplies by car/truck over 200 miles of jungle roads. This will of course require you to make some estimates on costs, provide a an explanation. Estimate how Zipline’s drone delivery might be evaluated if it was added as a row in Exhibit 11-5.