This Week's Detailed Case Study Information

Crystal Kayak has quickly become North America's #1 water sport activity, but a new problem has appeared. Inventory levels are fast depleting, and production is falling behind. Efforts to create new local manufacturing options have failed, and Crystal Kayak is finding it necessary to maintain production in China. While this assists with keeping costs down on the product, it does create a problem in the timeline for delivery of the product. Suppliers and distributors are growing frustrated with the product being out of stock.

Your team has been tasked with providing some preliminary research on some of the production issues, a recommendation on how to improve production timelines, and relationships with suppliers and distributors. It is expected that another 175 Crystal Kayaks will be manufactured and ready for shipment in 3 weeks. Once the manufacturing is complete, it will take approximately 35 days to be shipped to your warehouse in North America.

Problem #1

Crystal Kayak cannot afford delays in receiving this product. Your team must research what is necessary to import the product line into Canada. The product will leave Hong Kong in 3 weeks and take approximately 35 days to land in Vancouver, Canada. To avoid delays, your team must ensure that all proper documentation has been prepared, including the Bill of Lading (BOL), which includes proper HS codes, commercial invoices, customs declarations, and other necessary forms to receive the product into Canada. You must also plan last-mile delivery to your warehouse in Toronto, ON, Canada.

Problem #2)

Your suppliers need these Crystal Kayaks: however, you are only receiving 175 at this time, while over 500 have been requested. Your team must determine where you will supply these products to try and minimize the damage to relationships with your supplier partners while more products are created. Listed below are the inventory requests from your suppliers:

West Marine has 50 kayaks for sale.

Bass Pro Shops: 225 Kayaks

Nautical Ventures: 80 Kayaks

Costco: 120 kayaks

Mariana's Marine: 40 Kayaks

Deliverables for This Week's Case Study

Your task this week includes:

Provide shipping documentation, including the BOL, the commercial invoice, the customs forms, and any other relevant documentation.

Organize last-mile shipping information.

Provide a cost analysis of shipping and customs clearance. Break down the cost per

product.

Provide a recommendation for the distribution of inventory. Explain your decision.