Question: 1 . Assume you are Vanderpool. Draft the comparison that Pon had requested. 2 . Which of the two routing alternatives would you recommend? Why?

1. Assume you are Vanderpool. Draft the comparison that Pon had requested.
2. Which of the two routing alternatives would you recommend? Why?
3. Assume that the buyer in Saudi Arabia has made large purchases in the United States and is
considering consolidating all its purchases and loading them onto one large ship, which the buyer
will charter. The buyer contacts HDT and, although acknowledging its commitment to buy CIF
Jeddah, asks how much HDT would subtract from the $ 172,000 per truck price if the selling terms
were changed to Ex Works (Loaded) HDT's Crown Point plant. How much of a cost reduction do
you think HDT should offer the buyer? Under what terms and conditions?
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4. Answer question 3 with regard to changing the terms of sale to delivery at port in Baltimore. The
buyer would unload the trucks from the railcars.
5. Assume that the year 2005 and the cost to HDT of borrowing money is 12 percent per year. Because
the buyer will pay for trucks as they are delivered, would it be advantageous for HDT to pay
overtime to speed up production, ship the trucks as they are finished via the Port of Baltimore, and
collect its payment earlier? Why or why not?

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