Details: 1) The case study is to be analyzed and presented in a PowerPoint Presentation (can be with Audio/video) and supported by additional documents (excel spreadsheets, pdfs ) for any other info that is relevant to the solution/analysis. Utilize all topics in which you have studied this semester. 2) The presentation should be no more than 10 slides maximum and should include: a. Introduction and problem statement/challenge b. Assumptions that may be necessary in solution i. Not all info will be available/provided so you need to clearly identify your assumptions, which should be based on your knowledge c. Approach and Analysis i. Logic & Rationale ii. Financial calculations (if necessary) iii. Geographic information (maps etc.), Time zones for shipping. d. Recommendation of transportation solution 3) Grading will be based on content of solution provided as well as originality in presentation. Case introduction: Fortio Logistics is a Canadian based freight forwarder that services numerous clients in Canada that are wholesalers, distributors and direct to market retailers. Located in Windsor, Ontario, Fortio Logistics has been in business for the past 15 years and has a solid reputation in the industry. They have steady revenue with a dedicated and loyal customer base. There are no financial worries for the company and they are steadily growing their market share due to their ability to achieve great service with reasonable cost to their customers. Background: Levenworth is a medium sized digital security company providing electronic security options to the consumer market via USB storage devices, removable hard drives and e commerce encryption software for small businesses. They have been increasing market share in all 3 categories due to their proprietary software that secures the hard drives and USB devices as well as the security they provide to small businesses. Levenworth is planning to expand to markets outside of North America and are targeting Europe and South America as potential areas for expansion. They feel that the two markets will increase their revenue by 25-30% and hope to get the product moving there as soon as possible. They have already secured retailers the following European countries: Germany, France, Switzerland, Italy, Spain and Austria. In each countries capital they have a major distributer/retailer that has contracted to sell their products under the Levenworth name. The same contracts are in place for South American countries: Brazil, Argentina and Uruguay. They do feel that the European market will be stronger than the South American market and do not anticipate the same volumes for both areas. Each distributor will be purchasing 15000 USB devices, 12750 Hard drives and 1000 software packages every 3rd month. Analysis: Levenworth receives their USB devices, Hard Drives and compact discs (for the software they sell) shipped to them directly from their Chinese suppliers in Guangzhou. For the past 10 years their supplier has been arranging the shipping for them and the lead time for their product has been approximately 9-10 weeks from loading at supplier. They receive shipments every two months with each of their products included. In the North American market they are shipping to retailers and distributors via truck but know that they have to use alternative means of transport to get to Europe and South America. Currently Levenworth orders each of their products to ship together. The USB devices come in small boxes that hold 30 per box and measure 12 in L x 12 in W x 12 in H and weigh 2 lbs per box. The Hard Drives come in slightly larger boxes that hold 20 devices per box and measure 12 in L x 18 in W x 12 in H and weighs 5 lbs per box. The compact discs that they use to load the software and programming onto come in stacks of 100 discs per spindle and there are 6 spindles per box. The box is 18 in L x 8 in W x 10 in H and each box weighs 10 lbs. When they ship out the finished goods (packaged USB, hard Drives and CDs) they can only ship of the USBs and Hard Drives in the same size boxes with the same weights due to packaging. The CDs are sent with manuals and only 10 can be sent in each same sized box. Levenworth wants to hold 5% of what they sell to the European and South American Markets as inventory in their warehouse in Windsor, ON. Assistance Needed: Levenworth is asking Fortio to provide service to their European and South American Markets for each of their products in consolidated shipments. As a Business Relationship manager you are to present the pricing for their shipments to Levenworth. They will need to know whether to use ocean or air cargo to get the product to the locations or a mixture of both. You will have to decipher the size of air cargo skids and rates that would be used. Also you will need to know how many containers would be needed and what the cost would be for the shipments each quarter. Costing information Currently they pay $6500 CDN for door to door service per 20 container from their supplier in Guangzhou, CN. As Fortio has current volume in these lanes they can beat this pricing by 25% to Levenworth and still have a 20% profit margin on each container. Service per 20 container to the Europe would be $3500 CDN to Barcelona, SP; $3750 CDN to Hamburg and $4100 to Trieste, IT. This is the cost that Fortio would pay for the container move. They will charge $300CDN per cubic metre to Levenworth Service per 20 container to South America would be $2750 to Buenos Aires, AG; $2650 to Sao Paulo, BR. This is the cost that Fortio would pay for the container move. They will charge $275 CDN per cubic metre to Levenworth. Air Freight to each of the listed locations would be 500 kg buying rate of CDN $1.25/kg and a plus 500 kg buying rate of CDN $1.00/kg. Fortio would be charging a 125% markup on the rates that they buy. **You will need to calculate the proper chargeable weights for the shipments, how many containers will be required and what the total cost to the customer will be for the year. Make assumptions as necessary but be sure to include them in your presentation.**