Case $11\mathrm{.}1.$ Vibrant Video

Vibrant Video $\backslash (\backslash$left$(\backslash$mathrm$\{$V$\}^\{2\}\backslash$right$)\backslash )$ is a manufacturer of home cinema projectors and related components. The company assembles Ultra HD projectors in Portland, Oregon, and sells them online and through specialty electronics stores. The most popular model retails for $\backslash (\backslash$$ $3,995\backslash )$ and $\backslash (\backslash$mathrm$\{$V$\}^\{2\}\backslash )$ will bundle the projector with high fidelity audio components that are purchased from external suppliers.

Due to ongoing global trade uncertainties and delivery challenges with their Pacific Rim suppliers and carriers, $\backslash (\backslash$mathrm$\{$V$\}^\{2\}\backslash )$ has decided to buy the audio components from suppliers in closer proximity to Portland. The speakers will be supplied by an electronics company with operations in Tijuana, Mexico, and the receivers will be purchased from an audio lab in Manchester, New Hampshire.

The purchase contracts have been negotiated in principle. The speaker supplier sells its products FOB Destination, Freight Collect and Allowed. The supplier of receivers only sells its products FOB Origin, Freight Collect. The remaining issue for the $\backslash (\backslash$mathrm$\{$V$\}^\{2\}\backslash )$ transportation director is to evaluate the delivery options that her analyst recommended for each product and make a decision. Relevant information is provided in the following table:

$1.$ What responsibilities, control, and costs does $\backslash (\backslash$mathrm$\{$V$\}^\{2\}\backslash )$ bear under each of the FOB terms offered?

$2.$ What is the delivery cost and landed cost per set of speakers for each delivery option?

$3.$ Which delivery option do you recommend for the speakers?

$4.$ What is the delivery cost and landed cost per unit for each receiver delivery option?

$5.$ Which delivery option do you recommend for the receivers?

$6.$ What other supply chain issues and costs must $\backslash (\backslash$mathrm$\{$V$\}^\{2\}\backslash )$ take into consideration when making these transportation decisions?