Explain the operational planning needed in this freight operation. Include the transport routes, scheduling, and the types of multi-modal transport required, between the production facility in Prague to the warehouse in Hidd. 2. Explain the rules and regulations the company must meet in transporting the goods, including a suitable Incoterm, in this freight operation. 3. An explanation of the costs involved in this freight operation and how you would calculate a suitable charge-out rate (without using numbers).

Explain the operational planning needed in this freight operation. Include the transport routes, scheduling, and the types of multi-modal transport required, between the production facility in Prague to the warehouse in Hidd. 2. Explain the rules and regulations the company must meet in transporting the goods, including a suitable Incoterm, in this freight operation. 3. An explanation of the costs involved in this freight operation and how you would calculate a suitable charge-out rate (without using numbers).

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Wholesale Building Materials (WBM) plans to enter the Florida market next fiscal year. The company has already decided on a product line to introduce to the FL market. WBM’s plan is to serve FL from a DC located in Houston, TX. As an initial market entrance strategy, WBM has signed a vendor-managed inventory (VMI) contract with a company in FL. According to the contract, WBM needs to bring 7% of the total demand during each inventory replenishment cycle (i.e., shipment size is 7% of the total demand) in addition, an amount equal to the replenishment quantity will be kept as the average inventory in Houston against contingencies. The expected demand in the market will be a function of the time responsiveness of WBM. The demand function is defined as follows: Where D is demand per year in terms of normalized units and T (in days) is the response time for a certain mode of transportation. The cost of each product is $100 in TX, the inventory holding rate per unit per year is 24%,…
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