Case study 3

Use the following Case study to answer the next 5 questions:

Your regular customer has approached you asking about the lowest freight rate for an urgent shipment of 13 boxes of Canon Photo Paper Pro Luster from Ajax to Antwerp, Belgium. The box dimensions are 25 in x 25 in x 25 in, and each box weighs 18 lbs . You have been able to determine the following:

Option 1: Ocean freight:

Pre-carriage: CFS Ajax - CFS Montreal. US$38.00/m^3 (minimum 4 m^3)

Ocean freight: CFS Montreal - CFS Port of Antwerp: US $150.00/m^3 (minimum US$500.00)

Transit time: 12 days

Option 2: Air freight:

Terminal Ajax -Terminal Antwerp:

Minimum: CAN $320.00

- 60kg. : CAN $12.20

+ 60kg. : CAN $10.08

+ 110kg. : CAN $5.00

+ 560kg.: CAN $1.50

Transit time: 3 business days

Rate: US$1.00 = CAN$1.32 Exchange

Q1: How much is the Pre-carriage charges for the alternative 1 (by Ocean)? *

1. US$840.00
2. US$152.00
3. US$126.51
4. US$420.00
5. US$114.00

Q2: How much is the Ocean Freight charges for the alternative 1 (by Ocean) ? *

1. US$499.35
2. US$620.00
3. US$500.00
4. US$450.00
5. US$600.00

Q3: How much is the Total Ocean Freight charges for the alternative 1 (by Ocean) ? *

1. CAN$859.78
2. CAN$810.48
3. CAN$1,213.54
4. CAN$825.46
5. CAN$860.64

Q4: How much is the Air Freight charges for the alternative 2? *

1. CAN$1,073.52
2. CAN$2,774.15
3. CAN$2,775
4. CAN$860.64
5. CAN$1,934.16

Q5: Based on your customer's needs, how do you go about offering the fastest and cheapest option? *

1. Air Freight with CAN$860.64 in 3 business days
2. Ocean freight with CAN$810.48 in 12 Days
3. Air Freight with CAN$2,775 in 3 business days
4. Ocean freight with CAN$860.64 in 12 Days
5. Air Freight with CAN$1,934.16 in 3 business days
6. Air Freight with CAN$2,774.15 in 3 business days
7. Ocean freight with CAN$825.46 in 12 Days
8. Air Freight with CAN $840 in 3 business days
9. Ocean freight with CAN$1,213.54 in 12 Days
10. Air Freight with CAN$1,073.52 in 3 business days
11. Ocean freight with CAN$859.78 in 12 Days