View the step-by-step solution to:

Alice Johnson is materials and distribution manager for Global Logistics Enterprises.

can any one please help me with case study:


Alice Johnson is materials and distribution manager for Global Logistics Enterprises. She is responsible

for all transportation, distribution, materials, and purchasing for her firm.


Alice's company has just been awarded a new contract that will involve moving medicines from Toronto to

the Rohinga Refugees to be delivered to Medicin Sans Frontier (Doctors Without Borders) in Bangladesh.

She has hired your organization as her freight forwarder, consultant and agent. You have identified two

transportation choices:


1) move the freight by water, which takes 45 days, and


2) move it by air, which only takes 4 days, door to door.


The relevant costs in Susan's decision are as follows:


· freight by water is $2550 with delivery to the dock in New York costing $385 and pier to plant delivery in

the Middle East of $220. The air move would be $4,750 for door-to-door service

· documentation using the water mode would be $180 whereas the air move would cost $275 insurance

by water would cost $770 per move; with air it would be $250

· packing and crating by water would be $675 per shipment; with air it would only involve stretch wrapping

a special set of pallets for a total cost of $120

· the company hurdle rate (opportunity cost of capital) is 11%

· the value of the goods is $1,600,000 per shipment


Questions


1.

Introduce the project by creating a Freight Consulting Company, writing an introductory letter and

a MARKETING document that fully outlines the company background and credentials that qualify

you for the role of freight consultant to assist Alice. (see text)


2.

Calculate are the total costs of each method of shipping?

a.

Without the holding costs (opportunity cost of capital)?

b.

Including the opportunity cost of capital?


3.

Fully outline the other criteria that you would consider to ensure the product's safe arrival

(packaging, insurance & government partnerships with respect to security, TDG? What other

government departments are involved?


4.

Research the most appropriate complete routes and ALL modes that will be used in each case

and outline them on a map. Select your mode/route and fully justify your decision on mode(s)?


5.

Explain the recommended INCOterm and transportation payment terms would you recommend

for Global. Justify your answer. Complete the accompanied ICC Model Contract for the

transaction and explain your decisions in it. Append the completed contract to your paper.


6.

Outline all documentation would needed to support the transaction and ensure she gets paid.

Complete full price (estimated) quotation and a full set of relevant documents and append these

to the report.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question