The president and founder of Cooking.com is examining the concept of cost-to-serve in her Internet retailing company. The need for continued sales growth, coupled with the necessity of keeping costs down, puts pressure on her to make sure that the company's capacity-constrained fulfillment center carries products that offer the greatest profit potential, not just the highest gross margins. The company is already operating with a variety of fulfillment models, but she is unsure whether it has the optimal mix.
