LOGISTICS ASSIGNMENT

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Case Study

Select one of the case studies at the end of chapter 11. After reading the case study, develop a response that incorporates your answers to the case questions. 

The requirements below must be met for your paper to be accepted and graded:

·         Write between 750-1,250 words (approximately 3-5 pages) using Microsoft Word in APA style, see example below.

·         Use font size 12 and 1” margins.

·         Include cover page and reference page.

·         At least 80% of your paper must be original content/writing.

·         No more than 20% of your content/information may come from references.

·         Use at least three references from outside the course material, one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.

·         Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.

·         References must come from sources such as, scholarly journals found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.  

CASE 11.1

Vibrant VideoVibrant Video (V2) is a manufacturer of home theater projection systems. The company assembles Ultra HD projectors in Portland, Oregon and sells them online and through specialty electronics stores. The most popular model retails for $4,995 and V2 bundles the projector with high fidelity audio components that are purchased from external suppliers.Due to ongoing delivery challenges with their Pacific Rim suppliers and carriers, V2 has decided to buy from suppliers in closer proximity to Portland. The speakers will be supplied by an electronics company with operations in Tijuana, Mexico and the receivers will be purchased from an audio lab in Manchester, New Hampshire. The purchase contracts have been negotiated in principle. The speaker supplier has given V2 two shipping choices under FOB Destination, Freight Collect. The receiver supplier only sells its products FOB Origin, Freight Collect. The remaining issue for the V2 transporta-tion director is to evaluate the delivery options that her analyst recommended for each product and make a decision.

Relevant information is provided in the following table:

SPEAKERS RECEIVER

Manufactured in Tijuana, Mexico Manchester, New Hampshire V2 purchase price $175 per set $225 per unit Weight 28 pounds 5 pounds Dimensions 30” (L) × 18” (W) × 18” (H) 18” (L) × 8” (W) ×4”(H) Characteristics Sturdy, bulky,not easily damaged Compact,vibration sensitive,theft risk

Freight Terms FOB Destination, Freight Collect and Allowed FOB Origin, Freight Collect

Option 1 Weekly LTL delivery200 units$2,485 Cost per delivery Weekly Ground delivery200 units$2,169 Cost per delivery

Option 2 Twice per month TL delivery 400 units$2,946 Cost per delivery Twice per week airfreight delivery100 units$2,411 Cost per delivery

CASE QUESTIONS

1. What responsibilities, control, and costs does V2 bear under each of the FOB terms offered?

2. What is the delivery cost and landed cost per unit for each speaker delivery option?

3. Which delivery option do you recommend for the speakers?

4. What is the delivery cost and landed cost per unit for each speaker delivery option?

5. Which delivery option do you recommend for the speakers?

6. What other supply chain issues and costs must SSE take into consideration when making these transportation decisions?

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