Case Study - Smith Imports Inc. Smith Imports Inc. - Smith Imports Inc. - located in Cambridge, Ontario - supplies companies with promotional jackets from a Canadian clothing supplier, which has been going well. The Purchasing department has heard about a couple new and potential suppliers that they wanted to compare with their current Canadian supplier The buyer has done some research, which is given in the following paragraphs. A quantitative analysis is found in Table 1. OPTION 1 - Current Supplier: Located in Vaughn, Ontario. Service has been very good. Customers like the quality of the product. Delivered lead time is 2 weeks. Minimum order quantity is 10 jackets OPTION 2 - Precision Resource: Located in Mexico. Smith has received samples of the product, and they meet the quality requirements. They have been in business for over 20 years, and are willing to provide customer references. Precision Resource are requesting a 2 week lead time to make the jackets, and transportation is estimated to be another 1 week. They are requesting a minimum order of 20 jackets. OPTION 3 - Nanjing Mei Clothing Company: Located in China. The product quality is good. The company has been in business for about 5 years. They have some expertise in the fashion industry, and offer a wider selection of colours of jackets than the other suppliers. They do require a minimum of 100 jackets on an order, or there will be additional setup charges. I neir lead time is 3 weeks and the transit time is estimated at 4 weeks. Table 1 - Quantitative Information on Suppliers (Based on Incoterms 2020) Source Current Supplier Precision Resource Nanjing Mei Clothing Company Waterloo, Ontario Saltillo, Mexico Location Nanjing Shi, China Jacket price 26.5O CON DP Cambridge, Ontario 316 MXN FCA, Nuevo Laredo, Mexico 95 CNY CIF, Port of Vancouver Incoterm 15 MXN 3 CNY Freight to point of export per unit 1.85 CDN 75 CON Freight to country of import per unit Duty Rate Brokerage Charges per part 18% 09. $0.25 CDN $0.30 CON 1.75 CON 05 CON 1.40 CON Delivery in Canada per part Payment Terms Source Open Account Current Supplier Letter of Credit Cash in Advance Precision Resource Naon Mei 0% 18% Duty Rate Brokerage Charges per part $0.25 CDN $0.30 CON .06 CDN 1.40 CON Delivery in Canada per part 1.75 CDN Payment Terms Source Open Account Current Supplier Letter of Credit Cash in Advance Precision Resource Nanjing Mel Clothing Company Exchange Rates: 1 CDN - 14.39 MXN 1 CDN - 5.36 CNY The selling price for the completed jacket to Smith's customers is $33 CDN. Some competitors may come in at a lower price - $ 29 to $32 - but may be unable to provide the customer service that Smith prides itself on. Question 33 (10 points) Case - Smith Imports Inc: What is the total landed cost of each supplier option in CDN funds? Please show your work for full marks. (10 marks) (Canadian supplier, Mexican supplier. Chinese supplier) Question 34 (4 points) Case - Smith Imports Inc: What would be our recommendation for the logistics route, modes of transportation, and the type of equipment involved to move the product from Nanjing Shi China - an inland city - to Waterloo, Ontario. Ignore Incoterms given for this question. (4 marks) . + Paragraph B op IVA V 22