Objective:This Term Project will provide OPER$8340$ students with an opportunity to apply supplychain management tools & knowledge from the course to a real$-$world businessscenario.Grading:This Project is a group assignment. Each group will submit a Project report with theirown responses to six questions covering highlights from the first half of the course. TheTerm Project is marked out of $100$ points, accounting for $25\%$ of the overall coursegrade.Due Date:The Term Project is due by $11$:$59$ pm on your class day in week $7$ of the course $($or asadvised by your professor$).$Project Scenario:The scenario for this Term Project involves your decision to import an inventory ofsemiconductor chips for sale to automobile manufacturers in southwestern Ontario,Canada. Your supplier in this scenario is An$-$Kee Electronics, a semiconductormanufacturer located in Taiwan.Project Instructions:Students have either formed their Project groups or have been randomly assigned toProject groups by their professor to work together to research, review and discusscourse material related to the Term Project.All group members are expected to contribute equally to completing the Term Project.Each group should decide on individual student roles among themselves; every groupmember must prepare their own research following the Project Report requirements.Each group must appoint one member to consolidate the other studentsresearch material into the completed Term Project Report. The same groupmember must submit the Term Project Report as a Word document to the ProjectDropbox. Turnitin will evaluate all submissions.The same group member can submit your Project Report to the Dropbox multiple timesto reduce your Turnitin score. DO NOT submit your Project report to any DropboxVersion $1\mathrm{.}01$other than the Dropbox your professor has established for this course.A deduction of up to $30$ points for not following any element of the Project instructionsherein may apply at your professors discretion.Contact your professor if you have any questions on this section or problems assigningwork roles or collecting research from individual group members.Plagiarism:Submitting any work produced by someone other than yourself without acknowledgingthat source may be considered plagiarism. This includes writing, mathematicalsolutions, data, code, images, graphical designs, and more $($About Academic Integrity,$2021).($https:$//$lib$.$conestogac.on$.$ca$/$academic$-$integrity$).$Your Term Project Report should include appropriate citing and referencing based onthe current version of APA@Conestoga $($See https:$//$lib$.$conestogac.on$.$ca$/$apa$-$getting$-$started$/$introduction$.)$For example, your Term Project Report should adhere to the following guidelines: Quoting & Paraphrasing $($https:$//$apa$.$conestogac.on$.$ca$/$Sections$/$Quoting$)$ Citations in Text $($https:$//$apa$.$conestogac.on$.$ca$/$Sections$/$Citations$)$ Reference List $($https:$//$apa$.$conestogac.on$.$ca$/$Sections$/$ReferenceList$)$Please ensure that all group members read and understand their obligations andresponsibilities regarding academic integrity. All students must participate andcontribute to receive credit for the Term Project. Keep a copy of your work for your files.Students may be asked to submit their contributions to the group Report.Term Project Report marks, whether assigned to all participants as a group mark or tostudents individually based on their contribution, are at the professors discretion.All Project Reports submitted to the course Dropbox will be evaluated by Turnitin. Adeduction of up to $25$ points for excessive Turnitin scores may be applied at yourprofessors discretion. The unauthorized use of artificial intelligence technology tocomplete this Project Report is not permitted and may result in a zero mark.Contact your professor if you have any questions on this section.Formatting:A significant portion of the mark for your Term Project is based on Report formatting$($layout$,$ grammar$/$spelling$,$ presentation, citing, referencing, clarity, cohesion, etc.$).$Report submissions should be a MAXIMUM of twelve $(12)$ pages in length $($excludingthe Cover page, Appendices, Exhibits and References page$),$ single$-$sided, with $1$Version $1\mathrm{.}02$margins, in $12-$point Arial font. Reports may contain up to five $(5)$ pages of relevantAppendices and supporting Exhibits. See the Marking Scheme for more information.Assemble your Word document Term Project Report in the following order: Cover page $($listing the Report title, course name, course number andsection number, professors name, group number, and participatingstudents names$)$ Table of Contents Answers to questions $($Maximum twelve pages$)$ References page Appendices & Exhibits $($if applicable$)($Maximum five pages$)$Contact your professor if you have any questions on this section.Source Material:Information for completing this Term Project can be found within $($but is not limited to$)$your eText: FITT. $(2021).$ Global Value Chain $(7\mathrm{.}2$ ed$.).$ FITT. Students are expectedto augment their knowledge of the relevant issues in this Term Project by researchingonline resource material as necessary and where applicable. You may also consult thereferences at the end of this Project assignment $($recommended$).$ Contact yourprofessor if you have any questions on this section.Marking Scheme:See page $9.$ Contact your professor if you have any questions on this section.Project Description:By $2020$ increased demand for semiconductor chips in consumer electronics resulted ina chip shortage for many other manufacturing industries $($Straughan$,2023).$ Many NorthAmerican automobile manufacturers viewed this shortage as a significant risk sincemost semiconductor chips are produced in Asia $($Semiconductor Manufacturing byCountry $2023,$ n$.$d$.).$Many countries have announced subsidies to encourage domestic production ofsemiconductor chips. For example, the United States government passed the CHIPSAct, which includes $$52$ billion in government subsidies for research and production ofsemiconductors in the US$,$ and similar initiatives were announced in the EU$,$ SouthKorea, and Japan $($Scott$,$ n$.$d$.).$Meanwhile, federal and provincial government subsidies in Canada have alreadyencouraged General Motors, Honda, Ford, Stellantis and Toyota to establish or expandmanufacturing operations here. And recent subsidy announcements related to electricvehicles and battery production could further stimulate automobile production in Ontario$($Mai$,2023).$ Ontario is a popular choice for automobile manufacturers for manyreasons. Regarding logistics$,$ the province is in the middle of the country. It has anexcellent network of highways, railways, airports and ports, and land border access withVersion $1\mathrm{.}03$four US states. Ontario has the countrys largest population and a skilled workforce forthe automobile industry $($Canadian Provinces by Population $2023,$ n$.$d$.).$What the province does not have, however, is semiconductor chip manufacturers. Thisis problematic for automobile manufacturers since modern cars incorporate about $100$distinct electronic modules. These modules collectively include as many as $1,400$individual semiconductor chips that control various electronic systems and account foras much as $40\%$ of an automobiles cost $($Buchanan$,2022)($See Appendix A$).$Shortages in semiconductor chips can be traced to the origins of the COVID$-19$pandemic. As more people began working from home, demand for cars declined whiledemand for smartphones, computers and other electronic devices increased. Thesemiconductor industry quickly pivoted to meet this new demand and could not resupplythe automotive sector when market demand returned in $2020-2021.$ Adequateproduction capacity may be available by $2025,$ but the risk of another pandemic orshortages due to geopolitical tensions are real possibilities $($McKinsey & Company, May$2023).$You have identified a business opportunity in this environment and started a companyto provide semiconductor chips for automobile manufacturers in southwestern Ontario.Recognizing that automobile OEMs will purchase semiconductor chips in large volumesdirectly from the chip manufacturers, your business plan involves holding inventory ofseveral varieties of infotainment chips. Infotainment chips are located in the driverscockpit area of a car. They are required for the digital display $($e$.$g$.,$ calculation andvisual display of speed, mileage, fuel level, etc.$)$ and audio$/$visual connectivity ofnavigation systems $($e$.$g$.,$ verbal commands and directional map displays$)($SeeAppendix A$).$Your company, Ancaster Automotive Supply, is located in Ancaster, west of Hamilton,Ontario $($See Appendix B$).$ You source, import, and warehouse inventory of infotainmentsemiconductor chips from this location. When automobile OEMs in southwesternOntario cannot obtain the applicable infotainment chips from overseas suppliers, theycan order them from Ancaster Automotive Supply on a JIT delivery basis.An$-$Kee Electronics CorporationDuring your online research for a supplier of semiconductor chips, you contacted An$-$Kee Electronics Corporation, located in the Qidu $($chee$-$doo$)$ District of Keelung City, aport city near Taipei, in northern Taiwan $($See Appendix C$).$ Your initial inquiry drew aresponse from Hana Chen, International Sales Manager for An$-$Kee Electronics. Shetold you An$-$Kee had been in business for ten years, and most of its sales were toautomotive manufacturers in China. So far, she has been unable to develop business inNorth America because other Taiwanese companies like TSMC and ASE Technologieshave already dominated the global chip market.In follow$-$up discussions, it seemed clear that the potential existed for your twocompanies to work together. Your business model and proximity to automobileVersion $1\mathrm{.}04$manufacturers in southwestern Ontario was exactly the market opportunity An$-$KeeElectronics was looking for. Hana provided references and samples of severalinfotainment chips. After showing these samples to your contacts in the automotiveindustry, you were satisfied An$-$Kee manufactured the type and quality of products youwanted to hold in inventory.As an incentive to commence the business relationship, An$-$Kee offered to ship your firstorder of semiconductor chips upon receipt of an LC for $50\%$ of the invoice value. Theremaining $50\%$ would be payable as follows: $25\%$ would be payable in $120$ days bybank wire transfer, and the remaining $25\%$ would be on consignment $($i$.$e$.,$ payablewhen you sold the chips to your customers in Ontario$)$ plus a simple interest rate of $2\%$on the outstanding consignment balance. These were favourable terms for a first$-$timecustomer, and Hana explained that An$-$Kee wanted to acknowledge that you werestarting a new business venture. At the same time demonstrate its commitment todeveloping a market for its products in the Canadian automotive sector. She alsoprovided a price list of various products with progressive discounts based on orderquantities. An$-$Kee would purchase trade credit insurance to protect its receivables andonly requested that you arrange to pick up and transport your shipment from An$-$Keesplant in Qidu District, Taiwan, to Canada.Ancaster Automotives Opening OrderOver the next few weeks, you held discussions with the procurement and productionteams at the major automobile OEMs in southwestern Ontario. You identified threetypes of infotainment semiconductor chips produced by An$-$Kee Electronics forinventory. Your opening order to Hana Chen consisted of the following three items:An$-$Kee Semiconductor Chip An$-$Kee Part No$.$ Qty OrderedVisual Display Chip$*$ AK$-3895733250,000$AV Connectivity Chip$*$ AK$-9937194300,000$NAV System Chip$*$ AK$-4274095200,000(*$See Appendix D$)$When placing your order with Hana Chen, you informed her that your freight forwarder,Yusen Logistics, would contact her to confirm shipment availability. You also asked herto ensure that An$-$Kees shipping department assembles your order on North AmericanGMA pallets for storage in the automotive OEM warehouse racking systems$($iContainers$,2020,$ November $23).$Once Hana confirmed receipt of your order, you contacted Charles Wu$,$ a salesrepresentative with Yusen Logistics. You asked him to have his office in Taiwan contactHana Chen and arrange a pickup at An$-$Kee Electronics, No$.18,$ Dahua $3$rd Rd$.,$ QiduDistrict, Keelung City, Taiwan $206589($Taiwan Postal Code, n$.$d$.)$ for delivery toAncaster Automotive Supply, $569$ Jerseyville Rd$.$ W$,$ Ancaster, ON Canada L$9$G $5$A$2.$You also told Charles you would send him a copy of your purchase order to An$-$KeeElectronics for import Customs purposes, but Yusen would have to get the shipmentVersion $1\mathrm{.}05$size and weight information from the shipper. You expected An$-$Kee would be ready toship your order within $10-15$ days, FCA, An$-$Kee Electronics, No$.18,$ Dahua $3$rd Rd$.,$Qidu District, Keelung City, Taiwan $206589,$ Incoterms $2020.$You made it clear to Charles that you presently have no inventory of these items, so youmust be able to alert your OEM customers regarding inventory availability. Accordingly,you will require information regarding the shipments transit time, including the route andcarriers involved. You will also want to know if your shipment will be LCL or FCL $($TEUor FEU$)$ and how many cases and pallets it will consist of so you can preparewarehouse space in advance.Project Deliverables:Each group should consider themselves entrepreneurs, responsible for importingproducts to Canada for distribution. The scope of your role is to research and analyzeyour companys responsibilities and obligations and answer the following six questions,which make up this Term Project:$1.$ Using the information in your eText, identify the stakeholders in this scenario.$(10$ points total for this question$)2.$ Since it is your responsibility to arrange transportation for your order, there arefour Incoterms to choose from, including the FCA term you selected. Identify theother three Incoterms in this scenario and explain why you selected FCA. Inother words, explain why the other three Incoterms are inappropriate $(3$ pointseach$)$ and why FCA was your best choice $(1$ point$).(3$ x $3+1=10$ points total forthis question$)3.$ Using the information in your eText, identify the interaction group type $(5$ points$)$and the supplier interaction model $(5$ points$)$ in this scenario and explain why thatmodel best describes the relationship between An$-$Kee Electronics and AncasterAutomotive Supply $(5$ points$).(5+5+5=15$ points total for this question$)4.$ Using the information in your eText, classify the inventory in this salestransaction $(5$ points$)$ and draw up a commercial invoice to represent the firstshipment. $(15$ points$)(5+15=20$ points total for this question$)$Version $1\mathrm{.}065.$ Complete the following information for your opening order.a$)$ Fill in this Chart $(1$ point each x $18=18$ points$)($Show your calculations for allanswers.$)$Part ##Cases#PalletsNetWeight$($kgs$)$GrossWeight$($kgs$)$ Value TWD$ Value CDN$AK$-3895733$AK$-9937194$AK$-4274095$b$)$ Will Yusen consolidate your order in a $20$ or $40$ ocean container? Why?$(2$ points$))($Show your calculations.$)(18+2=20$ points total for this question$)6.$ Recall the payment terms requested by An$-$Kee Electronics and answer the followingquestions for your opening order: $($Show your calculations for all answers.$)$a$)$ What is the total value of your opening order from An$-$Kee Electronics in Taiwaneseand Canadian currency? $(2$ points$)$b$)$ What value will be shown as payable to An$-$Kee Electronics on your LC in Taiwaneseand Canadian currency? $(2$ points$)$c$)$ How much is the remaining $25\%$ payable in $120$ days by bank wire transfer inTaiwanese and Canadian currency? $(2$ points$)$d$)$ How much is the remaining $25\%$ payable on consignment in Taiwanese andCanadian currency? $(2$ points$)$e$)$ Identify the company or organization and your URL for currency conversions in thisquestion. $(2$ points$)$Version $1\mathrm{.}07(2+2+2+2+2=10$ points total for this question$)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$Answer questions in your own words rather than cutting and pasting information fromyour eText or the Internet.Show your calculations for answers to all mathematical questions.Answer all questions and submit your Project Report on time.All students must participate and contribute to receive credit for the Term Project.Contact your professor if you have any questions.Disclaimer:This is a work of fiction. Names, characters, businesses, events, and incidents are onlyfor illustration. Any resemblance to actual persons, living or dead, or events iscoincidental.Version $1\mathrm{.}08$