Case Study 1

This is a Team assignment; no individual assignment will be accepted (refer to our communication policy) You are currently working for a local distributor of various electronic devices, as a logistician. Your role to create, modify and supervise the movement of local and international shipments in the supply chain. The Operations Manager (OM), your boss, has discussed with you, a new product that management wants to import. The OM wants your suggestions as to:

-concerns that the company should be aware of

- which mode of transportation

- how to reduce transportation cost

- using FCA or other INCOTERM

- 1 x 40ft standard freight rate US6,000.00 (all in)

- LCL 140.00 w/m (all in)

The following details were given:

1)

Product: Retro Transistor radio - Chronomatic 242

Measurements of product contained in own retail packaging (not export packaging) 8"L x 2"W x 4"H

Weight 500 grams each

Master carton: L 45.72cm x W 29.21cm x H 25.4cm. Total max weight 50kg

Maximum height per pallet 36"

Stacking ; max 3 layers per pallet

2) Vendor: TuJiSham Industries located in Xiamen, China

3) Mode: Air or Ocean

4) First order quantity - 670 cartons

Your answers to the concerns should include a full explanation (pros & cons) in your choice of report format. Show all calculations.