物流前沿考试复习资料 考试题型

1． 判断题，共12题（内容范围在1、3、4、5、6、8、9章）； 2． 名词解释题，共5题（具体内容见下方）； 3． 问答题，共5题（具体内容见下方）； 4． 案例分析题，共1题，（具体内容见下方）；分值40 5． 计算题（）。 判断题可能考试范围： CHAPTER1

This chapter introduced the topic of logistics, which the CLM defines as ― that part of the supply chain process that plans, implements, and controls the efficient, effctive forward and reverse flow and reverve flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet cusTOM ers‘ requirement.‖本章介绍了物流这一主题，美国物流管理协会将物流定义为“计划、执行并调控高效率、高效益的正向与逆向货物流动，流动货物的存储与服务和流动生产环节与消费环节之间的相关信息，以满足可乎的要求。”

The economic impacts of logistics were discussed along with reason for the increased importance of logistics since 1980. Systems and total cost approaches to logistics were discussed, as were logistical relationships within a firm, with a particular focus on various interfaces between marketing and logistics. A brief description of a number of logistics activities was presented, and the chapter concluded with a brief look at logistics careers. CHAPTER3

This chapter discussed key issues of logistics and information techonlogy. Six general types of information management systems were examined, with a particular emphasis on relevant logistical applications. Topics discussed include EDI , auTOM atic indentification technologies, artificial intelligence, datamining, and enterprise resource planning systems, among others.

The Internet and its impact on logistics management were discussed, as were logistical intermediaries, such as logistics exchanges, that have been spawned by the adoption of Internet technology. The chapter concluded with a discussion of the logistical challenges of e-fulfillment. CHAPTER4

Order management deals with the handling of orders. CusTOM er service is defined as the collection of activities that includes order management and keeping the cusTOM er happy. CusTOM er service helps integrate the seller‘s logistical activities, because they must pull together to help the cusTOM er.

Also discussed were the order cycle and order management. The cusTOM er views the order cycle as the period of time from when the order is placed until it is received; the seller has a shorter view: from the time the order is received until the goods are shipped. Today, many orders are placed through computerized and electronic networks.

CusTOM er service standards are important yardstick of performance. Often, they are told to cusTOM ers(who may even collect reimbursement if the standards are not met). CusTOM er service standards are an important competitive tool and take time to develop and maintain.

Policies for returned products were discussed, as well as the role of the logistics staff in helping establish cusTOM er services goals. Also discussed were the measurement and control of cusTOM er service.

CHAPTER5

As this chapter demonstrates, many considerations must be taken into account as one chooses protective packaging. Much depends on the physical characteristics of the specific product. Some products are hazardous to either the enviroment or to persons handling them, and they require special packaging and attention. common carriers often specify the packaging that must be used. Concerns about recycling and environmental protection also impact the choice of packaging materials.

Packages have a sales functions as well, and a sturdy package contributes to a product‘s solid image. In recent years, retail packages have been provided with protective seals, which make it easier to detect tampering.

Retail packages are placed into cartons, which are loaded onto pallets to form unit loads. Then, the unit loads are loaded by forklifts into intermodal containers, truck trailers, or railcars. Palletization and unitization both refer to the utilization of pallet loads as a form of building block.

All materials have their unique handling and storage characteristics. A list of materials handling principles guidance for system design. CHAPTER6

Transportation is the links portion of the links and nodes that make up the logistics operation. Transportation is pivotal to the success of any logistics or supply-chain operation. The shippers of small quantities rely on the post office or parcel carriers such as UPS of FexEx. The next step is to ship by an LTL motor carrier that picks up goods and takes them to a local terminal, where they are loaded aboard a line-haul truck to a terminal near the consignee. A small truck then makes delivers from the terminal. In terms of numbers of shippers, the vast majority use only parcel of LTL services.

The next step, in terms of shipment size, is to ship in truckload, railcar-load, or barge-load volumes or to use a pipeline. The rates are negotiable, and service considerations are part of the negotiations. Carriers encourage multiple truckloads, multiple railcar loads, and so on. Specialized equipment is also used with these volumes or traffic. Specialized terminals are also cusTOM designed for handling each different type of bulk commodity.

Parcel and LTL shippers pay rates established in carrier tariffs. To prepare a tariff, the carriers need three different types of information before they know the exact rate for a specific shipment. The information needed is length of haul, size of shipment, and the cargo‘s handling characteristics. Cargo handling characteristics are usually incorporated into a product‘s classification number. This number if influenced by the product‘s density. This, in turn, is taken into account when the product is designed and when packaging is selected.

Today, many tariffs appear on the Internet and one can calculate rates using a computer. CHAPTER8

The chapter discussed several issues associated with the location of warehousing, manufacturing, and assembly facilities. General factors in facility location were looked at , including population and trade patterns. Population characteristics are a double-edged sword in facility location in the sense that population serves both as a market for goods as well as a source of labor. Changing trade patterns, spurred in part by multicountry trade alliances, have had a profound influence with respect to the location of distribution facilities.

This chapter also discussed specialized location charateristics, with a particular emphasis on free trade zones. It presented several examples of how grid systems can be useful for determining

the lowest-cost location for a facility. The chapter concluded with a look at facility relocation and facility closing. Companies should be cognizant of the human dimension associated with both relocation and closing. CHAPTER9

This chapter addressed inventories and inventory mangement. Because many challenges are associated with holding inventories, some companies try to shift this burden to other parties in the supply chain. Many companies seek to improve their inventory turnover levels, or the number of times that inventory is sold in a –year period.

When deciding what levels of inventories to maintain, companies try to minimize the costs associated with both too much and too little inventory .Too much inventory leads to high inventory carrying costs; too little inventory can lead to stockouts and the associated stockout cost; The worst outcome of a stockout is to lose both a sale, and all future business, from the cusTOM er.

The chapter also addressed when to order, as well as how much to order,reorder points signify stock levels at which a new order should be placed. With respect to how much to order, the economic order quantity (EOQ) minimizes ordering costs and inventory carrying costs.

Contemporary approaches to managing inventory ---ABC analysis, the JIT approach, and VMI---- were discussed. The chapter concluded with a look at special concerns associated with inventory and substitute items. This final section offered several examples of informal considerations that might affect inventory management. 名词解释题考试范围(28选5) CHAPTER 1

Freight absorption: （货运吸收）

Buyer pays a lower freight charge than the shipper incurs in shipping the products. 在航运中买方支付比托运人更低的费用。 PhanTOM freight:（幻影运费）

Occurs in delivered pricing when a buyer pays an excessive freight charge calculated into the price of the goods.交付费用中买方所支付的过度费用计算到商品价格的部分。 Reverse logistics: （逆向物流）

Goods that flow from the consumer to the manufacturer (e. g. , product recalls and product recycling).货物从消费者流向生产者（产品的召回和回收） Total cost approach: （总体成本研究法）

This approach is built on the premise that all the relevant activities in moving and storing products should be considered as a whole(i. e., their total cost), not individually.这种方法建立的前提是所有移动和储存产品的相关活动应该作为一个整体（即他们的总体成本），并非个体来考虑。

CHAPTER 3

E-fulfillment:（电子化操作）

Coordinated inbound and outbound logistics functions that facilitate the management and delivery of cusTOM er orders placed online.在网上促进物流管理和客户订单交付进站和出站的协调功能。

Enterprise resource planning(ERP): （企业资源计划）

Systems that attempt enterprise-wide coordination of relevant business processes by

allowing(conceptually, at least) all functional areas within a firm to access and analyze a common database. 通过一个公司获取和分析一个共同数据库职能领域尝试协调企业内相关业务流程的系统。

Logistics information system(LIS): （物流信息系统）

The people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to logistics decision makers. 为物流决策者收集、整理、分析、评估和分发有需要、及时和准确信息的人、设备和程序。 Transaction processing system(TPS): （交易运行系统）

A transaction processing system collects and stores information about transactions and may also control some aspects of transactions.一个收集和储存有关交易信息也可控制交易的某些方面的事务处理系统。

CHAPTER 4

CusTOM er service: （客户服务）

CusTOM er service is the collection of activities performed in a way that keeps cusTOM ers happy and creates in the cusTOM er‘s mind the perception of an organization that is easy to do business with.客户服务是保持顾客满意度和在顾客心中创造该团体是很容易洽谈的看法的一种持续方式。

Order cycle: （订货周期）

Elapsed time between when a cusTOM er places an order and when the goods are received.客户下定单到收到货物所经过的时间。

Replenishment cycle: （补货周期/补充周期）

Time from when an order is sent out to when the goods are received for goods needed on a regular basis.定期进行的所需商品的订单发出去到收到货物的时间。

CHAPTER 5

Building-blocks concept:（模块构建概念）

Combining smaller packages into larger units that can be more efficiently handled at one time. The building-blocks hierarchy is important to remember because each of the different building blocks is inside another, and their total effect must be to protect the product.把小包结合成更容易在同一时间处理的大的单元，记住模块构建的层次很重要，因为每块不同的建筑模块在另一块里边，而他们总的效果必须是保护商品。 Package testing: （包装测试）

Simulation of the types of problems that the package will be exposed to in warehouses and in transit. The packages are subject to tests that attempt to duplicate all the expected various shipping hazards: vibrations, dropping, horizontal impacts, compression (having too much weight loaded on top), overexposure to extreme temperatures or moisture, and rough handling. 模拟了那包将被暴露在仓库和过境的问题类型。该包受到所有预期的各种航运危害包括振动，跌落，水平的影响，压缩（有太多的重量在上面装），过度暴露于极端的温度和湿度，野蛮装卸等重复测试。

Unit loads: （单位负荷）

The boxes or other containers secured to a pallet are known as a unit load. A pallet load, or a similar-sized load on a slip sheet.箱或者固定在一个托盘上的其它容器被称为单元负载。一个托盘负载或者在滑片上类似大小的负载。

CHAPTER 6

Intermodal transportantion:（联合协运）

Using a container that can be transferred from the vehicle of one mode to a vehicle of another, and with the movement covered under a single bill of lading.使用一种可以从一种交通工具模式转移到另一种交通工具的容器，并伴随单一提单的移动。 LTL: （非满载货运）

A load that is too small to qualify as a ― truckload‖ under motor freight classfication rules. As such, it pays a higher rate per pound.一个相对在发动机货运危险品的分类规则下作为“卡车”资格较小的负载，因此它每磅的承载率较高。 Parcel carriers:（包裹载体）

In transportation, a small quantity or small package is called parcel; and firms that specialize in their carriage are called parcel carriers.在交通运输中，小批量或小包装被称为包裹，而专门从事运输它们的企业就叫包裹载体。 Ton-mile: （吨英里）

A ton-mile is one ton of freight carried 1 mile.一吨英里就是一吨货物携带一英里。

CHAPTER 8

Center-of-gravity approach: （重心研究法）

An approach for locating a single facility that minimizes the distance to existing facilities. 寻找一个到现有设施总距离最小的单一设施的方法。 Facility relocation:（设施搬迁）

Facility relocation is associated with business growth, with facility closing is associated with business contraction. More specifically,facility relocation occurs when a firm decides that it can no longer continue operations in its present facility and must move operations to another facility in order to better serve suppliers and/or cusTOM ers.设施的搬迁也业务增长、工厂关闭以及业务收缩有关。更具体地说，当一个公司认为它不能够在目前的状况下继续运营而为了更好服务供应商和顾客必须移动时，搬迁就会发生。 Grid system: （网格系统）

A location technique utilizing a map or grid, with specific locations marked on the north-south and east-west axes. Its purpose is to find a location that minimizes transportation costs.一种利用在南北和东西标记具体地点的地图或网络的定位技术，其目的是找出一个最大限度降低运输成本的位置。

CHAPTER 9

ABC analysis: （ ABC分析法）

In inventory management, the placing of items into categories A, B and C with respect to monitoring stock levels.在库存管理中，根据监测库存水平， 把货物分成A, B, C三类。 Inventory carrying (holding) costs: （库存持有成本）

The costs of holding an inventory, such as interest on investment, insurance, deterioration, and so on.因库存产生的成本，如投资、保险、变质等损失的利益。 Marginal analysis: （边际分析）

Analyzing the impacts of small changes, such as adding or subtracting one unit of input.分析小变化的影响，如增加或减少一个单位的投入。

Safety stocks: （安全库存）

A reserve inventory, in addition to that needed to meet anticipated requirements.除了满足预期需求以外的储备库存。

Vendor-managed inventory(VMI):（供应商管理库存）

Refers to a system where the size and timing of replenishment orders into a retailer‘s system are the manufacturer‘s responsibility.一个把零售商补货的时间和规模作为制造商职责的系统。

CHAPTER 10

Contract warehousing: （合同仓储）

A type of contract logistics that focuses on providing unique and specially tailored warehousing services to particular clients.一类主要为特定客户提供专门定制仓储服务的合同物流（活动）

Cross-docking:（交叉对接）

Immediately moving cargo as it is being received at a warehouse to a loading dock where it is loaded aboard outbound trucks.当货物装载到从仓库到码头出站卡车上时便立即移动。

问答题考试范围（23选5） CHAPER 1

2. Distinguish between possession, form, time, and place utility.区分持有效用、形式效用、地域效用、时间效用。

Possession utility refers to the value or usefulness that comes from a cusTOM er being able to take possession of a product. Possession utility can be influenced by the payment terms associated with a product.

Form utility refers to a product‘ s being in a form that (1) can be used by the cusTOM er and (2) is of value to the cusTOM er. Although form utility has generally been associated with production and manufacturing, logictics can also contribute to form utility.

Place utility refers to having products available where they are needed by cusTOM ers; products are moved from points of lesser value to points of greater value.

Time utility refers to having products avaliable when they are needed by cusTOM ers

11. Distinguish between inbound logistics, materials management, and physical distribution.区分内部物流、物料管理、物流。

Business logistics is made of inbound logistics, materials management, and physical distribution,the different between the three are as follows:

Inbound logistics: movement and storage of materials into a firm;

Material management: movement and storage of materials and components within a firm; Physical distribution: storage of finished product and movement to the cusTOM er.

13. Explain what is meant by the total cost approach to logistics.解释何谓物流的总体成本法。

This approach is built on the premise that all the relevant activities in moving and storing products should be considered as a whole(i. e., their total cost), not individually.

CHAPTER 3

2. Name the six general types of information management systems, and give one logistics

application for each one that you‘ve named.说出六个信息管理系统的基本类型，并为每一个你命名的信息系统作一个物流应用。

The six general types of information management systems are as follows:

1) Office auTOM ation system: provides effective ways to process personal and organizational

business data, to perform calculations, and to create documents. Logistics examples: Spreadsheet applications to calculate optimal order quantities, facility location, transort cost minimization, among others;

2) Communication system: helps people work together by interacting and sharing information in

many different forms. Logistics examples: Virtual meeting via computer technology .

3) Transaction processing system(TPS): collects and stores information about transaction;

controls some aspects of transations. Logistics examples: Electronic data interchange.

4) Management information system(MIS) and executive information system(EIS): converts TPS

data into information for monitoring performance and managing an organization; provides executives information in a readily accessible format. Logistics examples: Logistics information system;

5) Decision support system(DSS): helps people make decisions by providing information,

models, or analysis tools. Logistics examples: Simulation;

6) Enterprise system: creates and maintains considtent data processing methods and an

intergrated database across multiple business functions. Logistics examples: Logistics modules of enterprise resource planning systems.

14. Discuss advantages and disadvantages of enterprise resource plannning systems.讨论企业资源计划系统的优缺点。

The advantages of ERP comes from their potential for lower costs as well as increased productivity and cusTOM er satisfaction. All company functional areas use a common database to: Standardize manufacturing processes;Integrate financial data;Standardize human resource data

The disvantages of ERP are as follows: (1) Costs of installation;

(2)Time-consuming installation process

19. How is e-fulfillment similar to, and different from, traditional fulfillment?电子化操作和传统操作的相似和不同的地方在那里？

The comparison is as follows: E-fulfillment Many logistical functions and activities occur More, smaller orders Traditional Fulfillment Many logistical functions and activities occur Fewer, larger orders Order management and information management Order management system is set up to handle systems must handle large volumes of orders orders from resellers, not consumers Smaller orders dictate open-case picking Products slotted to facilitate picking smaller orders Totes and push carts used Full-case picking Warehouse set up to handle large volume orders Variety of materials handling equipment used Packaging is small cartons, envelopes, bags suited to Packaging generally cartons that hold large holding small quantities volume orders Transportation companies used with extensive Transportation methods and companies vary by delivery networks; experience in parcel shipments request of buyer Outbound shipments usually picked up by vans

Outbound shipments may be picked up by

tractor trailers or railcars Return rates much higher and from ultimate Return rates lower and from resellers consumers

CHAPTER 4

7. Discuss fully the basic parts that combine to form the order cycle.充分讨论订货周期的组成部分。

1) Order planning-connected to sales forecasting 2) Order transmittal 3) Order processing

4) Order picking and assembly 5) Order delivery

11. The text indicates that the role of the logistics staff is to act as an adviser to the maketing department regrading cusTOM er service standards. Explain the rationale for this statement. 该文本表明了物流工作人员的作用是作为一个市场终端部改编的客户服务标准顾问。解释这一声明的理由

Because cusTOM er service standards can significantly affect a firm‘s overall sales success, establishing goals and objectives is an important senior management decisioin. Distribution is closely related to cusTOM er service, so the outbound logistics department plays an important role in the establishment of cusTOM er service goals and objectives.

14. A potential weakness in the measurement of cusTOM er service standards is that the wrong elements may be measured. Discuss why this could happen. 一个在客户服务标准衡量一个潜在的弱点就是错误的元素可以被测量。讨论为什么这会发生

Many firms choose those aspects of cusTOM er service that are the easiest to measure, rather than those that may be the most important from the cusTOM er‘s point of view. CHAPTER 5

1. What is the difference between the selling and protective functions of packaging? How are the two functions related? Explain.包装的保护功能和销售功能的不同之处，这两个功能是如何相关的？解释。

The selling and protective functions of packaging sometimes conflict. Although from a relailing standpoint it may be desirable to have an attractive selling message on the outside of each box, when these boxes are in a warehouse the same message might make it easier for a thief to determine quickly which boxes contain the most valuable items. Using code numbers alone on the outside of the box slows down the thief.

7. What are some advantages and disadvantages of plastic pallets? 塑料托盘的优缺点？ Advantages

1) Additional protection 2) Pilferage is discouraged

3) More fragile items can be stacked inside the load 4) Mechanical devices can be substituted for hand labor Disadvantages

1) Provides large quantity that sometimes is of limited value to resellers dealing in smaller

quantities

2) Must use mechanical or auTOM ated device to move

13. What is the building- blocks concept? How is it applied to the handling of packaged goods? 什么是构建模块概念？它是如何应用到包装的货物处理呢？

Combining smaller packages into larger units that can be more efficiently handled at one time. The building-blocks hierarchy is important to remember because each of the different building blocks is inside another, and their total effect must be to protect the product.

CHAPTER 6

1. What are terminals? What functions do they serve?什么是终端，它有哪些功能？

The word terminal has two meanings: a transfer point or the end of a move. Often, inventories are kept at terminals to provide a cushion to accommodate the different patterns of inbound and outbound flow.

5. What is LTL traffic? How is it handled by the LTL carriers?什么是非满载运输，它是如何被LTL 公司处理的？

LTL traffic means less-than-truckload. To the LTL carriers, they have numerous terminals spread throughout the nation. From each terminal, small trucks go out to cusTOM er, delivering and picking up shipments. These shipments are then taken to the terminal, where they are load aboard line-haul trucks, which are driven to a terminal near the freight‘ s destination. The goods are unloaded from the line-haul carrier, move through the terminal, and are loaded a small truck for local delivery.

16. Compare the five modes of trandport-air, motor, pipeline, rail, and water-by at least three different criteria that you think are important.用至少三个你认为重要的不同标准来比较航空、汽车、管道、铁路、和水路五种运输方式。（用自己的积累回答就行，不再赘述）

CHAPTER 8

3. Briefly describe the general factors influencing facility location.简述影响设施选址的一般要素。

The factors are as follows: 1) Natural Resources

2) Population Characteristics—Market for Goods 3) Population Characteristics—Labor 4) Taxes and Subsidies

5) Transportation Considerations

6. Discuss how population can be viewed as both a market for goods and a source of labor.(P245)讨论人口是如何可以被看作是商品的市场和劳动力的资源的？

People can work, so population can be viewed as a market for a source of labor, and at the same time, people need to consume to survive, so population can also be viewed as a market for goods.

CHAPTER 9

3. Define what is meant by inventory carrying costs. What are some of its main components?什么是库存成本，它有哪些组成部分。

A prominent concern involves the costs associated with holding inventory, which are referred

to as inventory carrying (holding) cost.the main components are as follow:

1) Obsolescence

2) Inventory shrinkage 3) Storage costs 4) Handling costs 5) Insurance costs 6) Taxes

7) Interest charges 8) Opportunity cost

6. Explain the logic of the EOQ model.解释最优经济批量模式的逻辑。

The EOQ determines the point at which the sum of carrying costs and ordering costs is minimized, or the point at which carrying costs equal ordering costs.

10. How does vendor-managed inventory differ from traditional inventory management?供应商管理库存和传统库存管理的不同。

In traditional inventory management, the size and timing of replenishment orders are the responsibility of the party using the inventory, such as a distributor or retailer. Under vendor-managed inventory(VMI), by contrast, the size and timing of replenishment orders are the responsibility of the maunfacturer.

CHAPTER 10

1. Distinguish between warehouses and distribution centers.区别仓库和配送中心。 Warehousing: emphasizes storage of products.

Distribution centers : emphasize rapid movement of products through the facility.

4. What are the advantages and disadvantages of private warehousing?自营仓库的优势和劣势是什么？

Advantages: Assuming both sufficient demand volume and stability of demand, private warehousing offers potential users a great deal of control over their storage needs.

Disadventages: 1) High fixed cost of private storage;

2) The necessity of having high and steady demand volumes;

3) Private warehousing may also reduce an organization‘ s flexibility in

responding to changes in the external environment.

20. Discuss why contract warehousing is becoming a prefered alternative for many organizations.解释为什么合同仓储正在成为许多组织的首选方案。

Contract warehousing is becoming a preferred alternative for many organizations because it simultaneously mitigates the negative aspects and accentuates the positive aspects of public and private warehousing.

案例分析考试范围（6选1） 3-2、5-1、7-2、8-1、11-2、14-2

Case 3-2

Case 3-2 Just-in-Time in Kalamazoo

Jim Ballenger was president of a medium-size firm that manufactured mini motor homes in Kalamazoo, Michigan. The firm had expanded from a local Midwest market to a national one, including Southern California and New England. As markets had expanded, so too had sourced of supply for the company, with major suppliers located in Southern Califonia, the Pacific Northwest, and Michigan had been made for two reasond: Jim‘s former associates in the auto industry were there ,and the largest single component of the mini-the vehicle is built-was purchased from one of the U . S light-truck makers.

Like others in the field, Jim‘s company actually manufactured very few of its components. Virtually the entire product was assembled from components purchased from outside vendors. There was, however, a well-defined order in which the components could most efficiently be installed in the vehicle. Recently, it had become clear to Jim that transportation and inventory costs were a relatively large portation of his component parts expenses and that they might be ripe for a substantial reduction. He had been hearing about just-in-time(JIT) systems. According to some notes he had taken at a professional meeting. the JIT production system was developed by the Toyota Motor Company more than 45 years age. It involves an approach to inventory in turn, forces a complementary approach to production , quality contorl, supplier relations, and distributor relationships. The major tenets of JIT can be summarized as follows: 1. Inventory in itself is wasteful and should be minimized.

2. Minimum replenishment quantity is maintained for both manufactured and purchased parts. 3. Minimum inventory of semifinished goods should be maintained-in this case, partially

completed motor homes.

4. Deliveries of inputs should be frequent and small.

5. The time needed to set up production lines should be reduced to the absolute minimum.

6. Suppliers should be treated as part of the production team. This means that the vendor makes

every effort to provide outstangding service and quality and that there is usually a much longer-lasting relationship with a smaller number of suppeliers than is common in the United States.

7. The objective of the production syetem is zero defects.

8. The finished product should be delivered on a very short lead time.

To the U. S inventory planner, vice president of logistics, and production planner, an operation run on the preceding principles raised a number of disturbing prospects. Jim Ballenger was very aware of the costs that might arise if a JIT production system were to be established. From the materials management standpoint, the idea of deliberately planning many small shipments rather than a few large ones appeared to ensure higher freight bills, especially from more distant suppliers, for which freight rates would make the most difference.

With regard to competition among suppliers, Jim often had the opportunity, in the volatile mini-motor-home market, to buy out parts and component supplies from manufacturers that were going out of business. Those components could be obtained at a substantial savings, with the requipment that inventory in the particular parts be temporarily increased or that purchases from exiting vendors be temporarily curtailed. Perhaps the greatest question raise by JIT, however, had to do with the probability of much more erratic production as a result of tight supplies of components. Both with suppliers‘ products and with his own, Jim operated with the(generally tacit) assumption that there would be some defective conponents purchased and that there would likely

be something wrong with his product when it first came off the assembly line. For this reason, the Kalamaza minis were extensively tested (Their advertising said, ―We hope you‘ ll never do what we do to your Kalamazoo mini.‖), as were the components prior to installation. To the exten that only a few of a particular type of component were on hand, the interruption in the schedule would be that much greater. It might entail expensive rush orders for replacement components or equally expensive downtime for the entire plant.

Jim was also concerned about his relationship with his suppliers, as compares, say, to a large auto manufacturer. In the mini-motor-home business, generally the manufacturers are small and the component makers are large. In this situation, it was somewhat more difficult to see the idea of the supplier as a part of the production team, in the sense that the supplier would be expected to make a special effort in either quality control or delivery flexibility on behalf one of its almost miniscule accounts.

Despite there concerns, Jim was painfully aware that he was using a public warehouse near his plant that usually contained between $500,000 and$1,000,000 in inventory, on which he paid more than 1.5 percent per month for the borrowed funds used to buy it, as well as expenses relating to the used of the warehouse ifself. In addition, his firm was now producing so many different models (one with a bath, one with a shower only) and using so many different appliances (various types of radio, three varieties of refigerator, and so forth) that the costs of a saftly stock for each component were going up every day.

As an aid to making his dicision on whether to try a JIT orientation at his plant, Jim‘s executive assistant, Kathy Williams, drew up a table that summarizes the anticipated inpacts of a JIT system (see Ehibit 3-C). The figures are based on random samples f inventory items. The major component of any mini motor home-the chassis-would always be purchased on a one-at-a-time basis from Ford, Chevrolet, Dodge, or International. With rare exception, it would always be available on demand. It would be delivered through the local dealer. If the dealer did not have one in stock, one could easily be obtained from another area dealership.

Exhibit 3-C is a representative 10 percent sample of Ballenger‘s components inventory. It covers weekly use of each item, the current lot size purchased, and so on. Before figuring the tatal costs under the present and JIT systems, several additional facts must be noted. First, Ballenger‘s invenroty carrying costs are assumed to be 20 percent per year on the average investment in inventory on hand, including its acquisition and transportation cost. Second, under the current system, the number of units of each type of component kept in stock is calculated as follows: For those items purchased from vendors more than 500 miles away, a safety stock representing four weeks of use is maintained. For items from vendors between 100 and 500 miles away, a safety stock representing two weeks of use is maintained. For items from closer sources, a safety representing one week of use is maintained. In addition to safety stocks, the average inventory of any item is the current lot size purchsed, divied by 2. If you are familiar with Excel or other spread-sheet software, you might try using it here, although it is not necessary.

Exhibit 3-C 10 Percent Random Sample of Component Inventory.

Current system Using JIT Distance Average Average Current JIT from number of Unit freight Unit lot size lot vendor(in unit used cost cost per cost purchased size miles) each week unit 1,145 606 26 22 22 490 1,800 3 48 159 10 10 56 6 7 675 9 824 540 570 200 240 125 120 15 1,500 24 1,720 1,200 1,240 $100 80 16 110 95 8 136 2 4 7 $20 18 3 20 15 2 11 0 1 1 10 10 7 6 1 75 3 36 60 50 $105 100 15 113 85 7 130 4 5 7 Average fright cost per unit (surface) $22 18 4 25 15 3 26 0 1 2 Item Gas range Toilet Pump Refrigerator(large) Refrigerator(small) Foam cushion DVDPlayer(typeD) Dome lights Awning brackets Insect screens Note: The plant operates 52 weeks per year and produces 10 mini motor homes per week.

Questions

1. What is the total annual cost of maintaining the components inventory under the present

system? Item Gas range Toilet Pump Safety stock 40 40 56 Average inventory 100 120 63 60 8 750 12 860 600 620 Total inventory 140 160 119 66 15 2100 48 1684 1140 1760 Inventory cost 16800 15680 2261 8580 1650 21000 7506 3368 5700 14080 purchased cost per year 520×120 520×98 2912×19 312×130 364×110 35100×10 468×147 42848×2 28080×5 29640×8 Refrigerator(large) 6 Refrigerator(small) 7 Foam cushion Dome lights Awning brackets Insect screens 1350 824 540 1140 DVDPlayer(typeD) 36 The total annual cost =

(520×120+520×98+2912×19+312×130+364×110+35100×10+468×147+42848×2+8080×5+29640×8) +(16800+15680+2261+8580+1650+21000+7506+3368+5700+14080)×20% =113230+961750×20% =1324650$

2. What would be the total annual cost of maintaining the component inventory under the JIT

system (assuming no safety stocks)?

Item Gas range Toilet Pump Refrigerator(large) Refrigerator(small) Foam cushion DVDPlayer(typeD) Dome lights Awning brackets Insect screens JIT per week 10×(105+22)×10/10 10×(100+18)×10/10 7×(15+4)×56/7 6×(113+25)×6/6 1×(85+15)×7/1 75×(7+3)×675/75 3×(130+26)×9/3 36×4×824/36 60×(5+1)×540/60 50×(7+2)×570/50 the total annual cost =10×(105+22)×10/10+10×(100+18)×10/10+7×(15+4)×56/7+6×(113+25)×6/6+1×(85+15)×7/1+75×(7+3)×675/75+3×(130+26)×9/3+36×4×824/36+60×(5+1)×540/60+50×(7+2)×570/50 =1292824$

3. Should Ballenger take into account any other costs or benefits from the JIT system? If so,

what are they?

Under a JIT system, Ballenger should exhibit less concern with various problems associated with maintain a large inventory such as shrinkage and obsolescence（报废和收缩）.

4. If the JIT system is adopted, are there safety stocks of any item that should be maintained? If

so,which ones and how much?

Unfortunately, the case does not provide sufficent information to answer this question. Part that are crucial to the process would need to be indicated by management.

5. If the JIT system is adopted, what changes, if any, should occur in the relation relationships

between Ballenger‘s firm and his suppliers of components? Disscuss.

He would need better discipline in terms of prompt delivery and freedom from defects.

6. Assume that Ballenger has switched to the JIT syetem and that receives a superise phone call

from a competitor who is going out of business. The competitor wants to sell Ballenger 7,000 dome lights of the listed in Exhibit 3-C. Ballenger buy them? If so, at what price?

Probably not , because this would undermine the discipline envisioned by the JIT system. On the other hand, if the purchased price was very low, and there were no unique storage requirement, Ballenger might by them.

7. Carrying costs are 20 persent. Is there a level of carrying costs at which both Ballenger‘s

present system and a JIT system have similar cost? If so, what is it? If there are 961750 × x%+1132300 = 1292824 then the x = 16.7 so the carrying costs are 16.7 persent.

Case 5-1

Case 5-1 TOM Light Lamp Shade Company

Started in Madison, Wisconsin, after the student unrest of the 1960s had died down, the TOM

Light Lamp Shade Company served an upscale local market for many years. It designed and built cusTOM lamp shapes and lamp globes, In the mid-1980s, some architects who had once studied under Frank Lloyd Wright in nearby Spring Green were commissioned to design several large public buildings in Asia. A total of 5,400 identical lights were to be installed, and the TOM Light Lamp Share Company wished to bid on the work. Terms of sale would include delivery to the foreign port where the buyer would take possession.

威斯康星州麦迪逊市，在20世纪60年代的学生骚乱已经平息开始，汤姆光灯灯罩公司服务多年的高档本地市场。它设计和建造的自定义形状和灯灯地球仪，在80年代中期，一些谁曾在莱特研究附近的春绿建筑师被委托在亚洲设计的几个大型公共建筑。5400相同的灯总要安装了，而汤姆光灯股份公司希望投标工作。销售条款将包括运送到外国港口的买受人将接管。

Transportation costs would be a hurdle. In the intial design, the shades were cylinders that were 11 inches high and 11 inches in diameter and were packed into boxes that were 12 by 12 by 12 inches.(We refer to these shades as style A.)The package cost 60 cents each and weighed 1 pound each. The shades cost $4 each to manufacture. They weighed 9 pounds each and 10 pounds packaged.

运输成本将是一个障碍。在最初设计中，色彩是气瓶的分别为11英寸高，直径11英寸，被装成箱被12英寸，12 12。（我们把它们称为风格答：窗帘）的每包60美分的费用和每个重达1磅。阴影成本4美元每生产。他们给了9磅和10磅每打包。

They would be shipped to the Port of Oakland. The land rate to Oakland was $1,000 per 40-foot container, without regard to weight, although the weight of the load could not exceed 44,000 pounds per loaded container because of highway weight restrictions. The interior dimensions of the intermodal container were 8 feet wide by 8.5 feet high by 40 feet long.

他们将被运到奥克兰港。土地率奥克兰为每40英尺集装箱1000，不考虑重量，虽然载重量不能超过重量限制，因为公路装载容器，每44,000英镑。在联运集装箱的内部尺寸为8英尺，8.5英尺40英尺长高宽。

Ocean rates from Oakland to the overseas port were $22 per ton (2,000 pounds),expect that the ocean conference used a measurement ton that indicates that for bulkly loads every 40 cubic feet would equal 1 ton for rate-making purposs.(That is, a shipment weighing, say, 130 pounds and occupying 80 cubic feet would cost as though it weighed 4,000 pounds.) Insurance costs were 2 percent of the value of the shipment ready to be loaded aboard ship in Oakland. (This is calculated as all of the company‘s costs up to this point.)

从奥克兰海洋比率向海外港口分别为22元吨（2000磅），预计海洋大会使用的测量吨，指出对bulkly负荷每四〇立方英尺就等于为费率的purposs 1吨。（也就是说，货件重量，也就是说，130磅和占领八〇立方英尺将成本虽然重达4000磅。）保险费用的2货物价值的百分之准备要加载在奥克兰登上船。 （这是该公司计算的成本都到这点。）

Because of the large size of the order, TOM Light Lamp Shade Company realizes that it could cusTOM design a shade that, rather than being a cylinder, would be shaped like a cone. The advantage to that was that the shades could be nested. Some padding would be required between the shades, but the nested shades would also help protect each other. However, cutting out material for conical shapes other. However, cutting out material for conical shapes results in waste, so production costs would be higher. Two alternative cone-shaped designs were proposed ( referred to as styles B and C).

由于订单规模大，汤姆光灯灯罩公司意识到它可以定制设计一个，而不是一个圆柱体，

会像一个锥形阴影。的优势，那很可能是嵌套的色调。将需要一些填充之间的色调，但嵌套的阴影，也将有助于保护对方。不过，忙于为其他锥形形状的材料。但是，切出的结果锥形形状各异的废料，因此生产成本将会更高。两种可供选择的锥形设计，提出了（简称样式B和C）。

Style B cost $5 per shade to manufacture and could be shipped nested in packages of six. The packsge dimensions were 12 by 12 by 48 inches, and when holding six shades, a package weighed 62 pounds. Each package cost $2, and this included padding between the shades.

B型成本5元遮荫制造，可运六包嵌套。该packsge尺寸为48英寸，12 12，当持有六色调，一包重达62磅。每个包的成本2元，这之间的色调包括填充。

Style C cost $6 per shade to make and could be shipped nested in packages of 10. The package dimensions were 12 by 12 by 50 inches, and when holding 10 shades, a package weighed 101 pounds. Each package cost $3, including padding between the individual shades.

模式C的成本为每6至阴凉处使，可运10包嵌套。该封装的尺寸为50英寸，12 12，当持有10色调，一包重达一百〇一磅。每包3美元的成本，包括个人之间的阴影填充。

Question

1 foot = 12 inches, so the interior dimendions of the intermodal container were 96 inches wide by 102 inches high by 480 inches long.

1. How many style A shades can ba loaded into an intermodal container?

The packsge dimensions of sytle A are 12 by 12 by 48 inches the number of style= 8×8×40=2560

2. How many style B shades can be loaded into an intermodal container?

The packsge dimensions of sytle B are 12 by 12 by 48 inches the number of style= 8×40×2×6=3840 3840＜4400

3. How many style C shades can be loaded into an intermodal container?

The packsge dimensions of sytle C are 12 by 12 by 50 inches the number of style= 8×40×2×10=6400 6400＞4400

4. What are the total costs of delivering the style A shades to the port of importation?

The total cost

（制作*数量+包装*数量+集装箱费*个数）*（1+保险费）+[(个数*体积）/40]*22 =(4*5400+0.6*5400+3*1000)*(1+2%)+[(5400*1)/40]*22 =31367$

5. What are the total costs of delivering the style B shades to the port of importation?

The total cost

=(5*5400+5400/6*2+2*1000)*(1+2%)+[(5400/6)*4/40) ]*22 =33396$

6. What are the tatal costs of delevering the style C shades to the port of importation?

=(6*5400+5400/10*3+2*1000)*(1+2%)+[(5400/10)*(50/12)/40] *22 =37978

7. Which style would you recommend? Why? A

Case 7-2

Case 7-2 Nurnberg Augsburg Maschininenwerke( TOM .)

The Nurnberg Augsburg Mashchinenwerke, one of Germany‘s most successful manufacturing companies, enjoys a long tradition. It dates from 1748, when the St. Antony lron Mill opened in Oberhausen (located in the heart of the Ruhrgebiet industrial region) during the beginning years of German industrialization. The owners soon founded additional iron and coal mills, then established the firm as Gute Hoffungshuette(GHH). Shortly following, in Ausburg and Nurnberg, several companies joined together to form Nurnberg Augsburg Maschinenwerke (TOM ). These two firms, GHH and TOM ,would ultimately merge in the early twentieth century. In the interim, TOM had distinguished itself through the work of Roudolf Diesel, who invented his famous engine and then brought it to TOM late in the nineteenth century.The Diesel engine in early auTOM otive design and today powers heavy trucks, turbines, railroad engines, and ships. Based on this success, TOM swiftly expanded manufacturing operations and distribution across the globe, only to have its foreign operations compromised by international politics on two occasions. First, TOM Lost most of its foreign property in the wake of World War I, a setback that, among other adjustments, encouraged its merger with GHH in 1920. Second, TOM lost all of its foreign property again after World War II and had to rebuild and restructure much of its domestic operation as well. In 1995, the company opened a trcuk unit in Munich, which would later become the new company headquarters.

By 2003 the company had reclaimed its preeminence as a global player in heavy truck and bus design, engineering and manufacturing, as well as in print technology, rocket, and energy science. It had reestablished both its plants and sales offices across the globe. It is one of the largest diesel engine makers in the world. Karl Huber was the TOM regional vice president of sales for South America. He supervised a team of local sales representatives in the countries of that continent, plus a small group of people in the Munich headquarters.

On August 15, Huber received an e-mail from Leopold Escabar in Caracas, who had just returned from an important meeting with local authorities in charge of redesging the local public transportation systems for the Brazilian cities of Sao Paulo and Riode Janerio.Escabar gave Huber some good news and some bad news. Escabar had been told TOM was favored to receive an order for 224 TOM class# 4-G two-section articulated buses(or ―accordion‖ buses, as Escabar liked to call them), with the possibility of securing a contract for an additional 568 buses. To win the business, however, TOM would have to meet cost and timing guarantees.

The cusTOM ers first required that TOM must match or beat the total price per unit, including shipping, that TOM had received for a shipment of 233 buses to the transit district of Buenod Aires, 6 months earlier. That price was (Eurodollar) 124,500 per bus. Huber had built in a small ectra profit margin on the Buenos Aires deal, so he felt confident that to meet their pricing demand he could shave profit a little, if necessary, in this case.

The second guarantee, however, was more worrisome: The Brazilian authorities were feeling political heat because they were badly behind schedule implementing their tranportation plan and needed proof to show to the public that their new programs were underway. So they had made this offer to TOM on strict condition that the company could ensure delivery of the first 25 buses to Santos, the port that serves Sao Paulo, by November 15 (only 3 months away).If TOM delivered this initial 90-day order on time, the company would receive a contract for the following 15

months. The follow-on order for 568 more vehicles was, essentially, contingent on meeting trems of the initial contract to the letter, with regard to the 224 buses were to be delivered to Santos, a principal Brazilian port.

Huber whistled softly to himself as he read Escabar‘s e-mail. This would be a major order. In a single stroke, it could move him ahesd of his regional sales rargets for several quarters come. Huber immediately sent back an e-mail, instructing Eascabar to tentatively accept the offer, assuring the local authorities that they‘d have their 25 buses in 90 days and the rest within 18 months. TOM would formally agree to the proposal within 5 working days. Then he scratched his dead and tried to figure out how. Huber had a days before the next manging director‘s meeting, at which time he would present the project and ,with the vice president for production, propose a plan to accomplish it. Huber lunged for the phone and ,scarcely alancing at the number pad, his fingers auTOM atically dialed 4843.

Dieter Berndsen, the production V. P., listened as his old friend Huber described the opportunity, jotting down notes as he went, He explained to Huber that the factory in Munich was already producing to its limits and the two other German facilities were also facing a backlog of orders through the fourth quarter. So Berndsen offered two immediate possibilities, First, he condidered wait listing a 40-bus order from the Thai military at the Munich plant, He said reluctant to do this,however, because the Thais had ordered several product modifications and the Munixh line had already set up to handle them. Second, Berndsen suggested sending the new Brazil order to TOM ?s Prague facility. Prague was the smallest of all the European pants and had the oldest, slowest assembly lines, but they were just finifhing up manufacture of an order of #4-G‘s and, due to a recent order candellation, would now be working at only 70 percent capacity through year-end. Within 8 weeks, figured Berndesen, prague could easily handle the order for Brazil‘s first 25 buses.

Huber eagerly agreed as Berndsen decided to recommend Prague for this assignment.The problem was that this facility could not produce fast enough to fulfill more then 20 percent of the rest of the contract (for the 224 buses), which meant that he would have to coordinate production and delivery on the rest of this order from other plants. Sighing audibly over the phone line , Berndsen said,‖Thanka a lot for the now headache, Hubie Let me mull this one over for a bit before I call you back. But don‘ t worry, we‘ll make your deadline---and you will make you bonus. Just remember to cut me in for a piece.‖

Huber bhuckled, thanded him, and hung up.

Berndasen decided to split the full order (224 buses) among the factories in Prague and the much larger plant in Munich, To finilize both scheduling and pricing , he now needed to estimate the time it would take to fulfill the order, as well as the cost fo transportion. He was inclined to use the Deutsche Bundesbahn to transport the buses by train to the North Sea port of Bremerhaven for each of the plants involved.

Berndsen‘s immediate problem was the first shipment of buses, which would be ready to leave Prague on October 15. Berndsen asked Marcus Prague on October 15. Berndsen asked Marcus Weiss, his supply-chain analyst, to create a work sheet that would shoe all costs and times required to get the buses from the Prague factory to the port of Bremerhaben, and he also asked Weiss to identify viable alternatives.(Europe possesses an extensive network of rivers and channeld that connect together its network of commercial waterways. Barges represent alternatives to the road and railroad. The European Green movement continually asked shippers to

use the water routes and ,occasionally, would attempt to publicly embarrass shippers who used trucks rather than water.) Condequently, the Prague plant sometimes transported buses on barges via the Elbe, north to Hanburg, The German plants occasionlly shipped north to Bremerhaven or Hamburg, via a network of industrail waterways, or westward, over the River Rhein, to the port of Rotterdam in the Netherlands.

Following is some of the infoemation Weiss assembled for Berndsen:

·By train, the geographic distances between plants and ports were as follow:Prague to Hamburg 490K, Prague to Ritterdam 640K ·TOM would need 3 days to get the buses from the factories in Prague to the port of Bremerhaven or Hamburg by train and 4or 5 days to reach Rotterdam.The advantage of Rotterdam comes, however, in the shipping time from there to Santos, which saves a day versus Bremerhaven or Hamburg, and ocean shipping charges are 5 persent less.

·The Czech railway could transport the load to the border with Germany, where the Deutsche Bundesbahn would take over the flatcars, which carry two buses each. The Bundesbahn quotes a price of ￠1,643 per flatcar from Pragues to Hamburg, which includes the service by its Czech partner. If rail were used from Prague to Rotterdam, the cost per flatcar would be ￠1,943. In either port, it cost another ￠45 per bus to have it unloaded and driven to alongside the vessel. The vessel line can load and pack 20 buses per day charging ￠25 per bus and up to 30 buses with overtime charges. The overtime charges would amount to an additional ￠15 per bus (for buses 21,22, and so on). All charges per bus included detaching the two halves. ·Using the waterways instead of trains to reach the Hamburg port from Prague would decrease the transportation cost by￠48 per bus.Waterway transportation would increase the transport time necessary by 3 days to Hamburg.

·For transoceanic shipping on any of these routes, TOM works with Hapag-Lloyd AG. Hapag-Lloyd is albe to offer a cheap and flexible commodity cost,through its alliance with NYK, P﹠O Nedllod,MISC, and OOCL,for the ocean transport of the buses.One vessel could carry up to 125 buses as deck cargo, but they would have to be disassembled at their accordion junctions and then reassembled again at their destination.

·The cost bus (in shipments of 20 buses or more) from Bremerhaven or Hamburg to Santos is quotes at ￠6,000and the trip requires 18 days. Hapag-Lloyd indicates that deck space is available for the initial shipment of 25 buses on vessels departing Hamburg on October 24, October 27, October 31, and Novenber 3. Hapag-Lloyd also has space on vessels leaving from Rotterdam to Santos on October 23, October 28, and November2.

·Handling(unloading) in Santos is estimated to cost another ￠94 per bus, and this inclueds reattaching the two halves.

·The interrest for TOM .‘s line of credit is 10 persent.

Questions

1. Assume that you are Weiss. How many viable alternatives do you have to consider regarding

the initial shipment of 25 buses?

Bremerhaven X no scheduled liner service in the cesired time frame

18days Hamburg Oct 24 Oct 27 Oct31 Nov3 required Nov15 17days Rotterdam Oct23 Oct28 Nov2

Although the Oct27 daparture from Hamburg or the Oct28 daparture from Rotterdam should

get the buses to Santos by Nov15, neither daparture leaves much room for potential transit delays (e.y. a late season hurrcane) As such, it appears that Weisss has only two vialbe alternatives;the Oct24 daparture from Hamburg and the Oct23 daparture from Rotterdam. 2. Which of the routing alternatives would you recommend to meet the initial 90-day dead line

for the 25-bus shipment?Train or waterway? To which port(s)? What would it cost? By rail

Hamburg 6000 × 5% = 300 The cost difference: Rotterdam is higher Rotterdam 300 × 13 ( 300 × 12 = 3600)

According to the calculation, Hamburg is better ,In addition, the prouded transit times with Hamburg are difinitive, that is 3 days by rail and 18 days by water With Rotterndam, by contrast, the rail transit time is either 4 or 5 days, although water transportion is 17 days. 3. What additional information would be helpful for answering question 2?

① The case offer no insight about port congestion issues and how this congestion might

impact the timeliness of shipment loadings. ② There is also no informatino about port performation about port performance in terms of

loss and clamage metrics ③ Although the case indicates that rail transit time from Prague is either 4 or 5 days, it

might be helpful to know what percentage of shipment is completed in 4 days.

4. How important, in fact, are the transport costs for the inijtial shipment of 25 buses?

Clearly, with ocean shipping costs of either 5700 or 6000 per bus, transportation costs can‘t be ignored.Having said this, the initial shipment holds the key to the ramainder of the order(another 199 buses) and appears to be instrumental in securring ,another order for 508 buses(for a total of 767 more buses), As such, TOM might be somewhat flexible with respect to rransportation costs for the initial shipment. Because of such a large upside with respect to additional orders TOM might focus on achieving the specified metrice for the initial shipment without being overly concerned with transportation costs.

5. What kinds of cusTOM er service support must be provides for this initial shipment of 25

buses? Who is responsible?

Although a number of different constituemies are involved(e.g. railroads, dock, workers, ocean carrier, etc) the particular cusTOM er, the public transit anthorities-are buying product from TOM Because of this, TOM should be responsible party without respect to cusTOM er service support.For example: ① Real time shipment tracking should be an option,so that cusTOM ers can know, at any

time the location of the shipment. ② TOM might also proude regular updates of shipment progress; perhaps TOM could email

or fax ―important‖ prgress points. ③ Because successful performance on the initial shipment is crucial to securing future

business TOM might have one of their managers actually accompany the shipment.

6. The Brazilian buyer wants the buses delivered at Santors. Weiss looks up the International

Chamber of Commerce‘s year 2000 Incoterms and finds two categories of ―delivered‖ at a receiving port? ·DES(Delivered Ex Ship). In this type of transaction, the seller must pay all the costs and bear

all the risk of transport up to the foreign port of unloading but not including the cost or risk of unloading the cargo from the ship.

·DEQ(Delivered Ex Quay).This is the same as DES, except that the terms provide for the

seller to pay the costs of unloading the cargo from the vessel and the cost of import clearance. How should he choose? Why?

Again,given the importance of the initial shipment, it would appear that the more control that

TOM has over the process, the better ,Although the DEQ option is more costly, it also afford TOM a bit more controlluter into the shipment process, Moreover, a willingness by TOM to take on the additional costs associated with DEQ might be viewed in a positive fashion by the cusTOM ers.

7. Would you make the same routing recommendtion for the second, larger(199 buses)

component of the order, after the initial 90-day deadline is met? Why or why not?

Time pressues do not appear to be as critial for the larger conponent of the order, so this might argue for use of water transportation between Pragur ang Humburg.The rationale would be that even though water transportation is slower, it saves money (48 per bus)over rail water shihpments. Alternatirely, given that the selling price per bus is likely to be around 120000, trasing off 3 days transit time in exchange for saving of 48 might not be such a good idea. 8. How important, if at all, is it for TOM to ship via water in order to show its support of the

Green movements desides?

On the other hand, TOM could use rail tranportation to Hamburg, Brernerhaven, or Rotterdam- a significant point in that the case indicates that the ―Green‖ movement appears to be more concerned with substituting water for truck movements than with substituting water for rail movement has not hesitated to publidy embress shippers who use truck instead of water.Have the ―Greens‖ also targeted shippers who use rail instead of water? What is the nature of the public embarrassment formualated by the ―Greens‖? The case hasn‘t tell us.

Case 8-1

Case 8-1 Aero Marine Logistics

Aero Marine Logistics (AML) was incorporated as a Private Limited Companyin South Delhi in the year 1996. The promoters of AML are two professionnals who had gathered 15 years of experience working for Tata Steel (one of the biggest and oldst companies in India) in the field of shipping, cusTOM s clearance, forwarding, and transportation. Over the last 5 years, AML has been successful in building an infrastructure and pool of experienced personnel to handle the entire gamut of logistics. In fact, it was one of the first companies to offer door- to- door delivery, It considers itself the specialists in cusTOM ized solutions and services—a concept that is still unheard of in the transportation industry in the rural belts of northern India. AML handles the entire package of logistics for all its cusTOM ers. Some of the services they offer include the following:

·Import consolidation. AML has a well-spread notwork of offices and trade connections in the United States, Eurpose, the Far East, and the Middle East to render import consolidation by both air and sea to any part of India. It promises a personalized promopt service with value for cost.

·Door-to-Door services. AML is fully equipped to deliver door to door, which includes cargo pickup from the supplier‘s warehouse, ware-housing prior to cusTOM er clearance, complete

cusTOM s clearance of exorts from overseas, and freight booking with airlines/shipping lines to receive cargo in India. It also undertakes Local cusTOM s clearance and transportation to deliver to the door of the cusTOM er.

·Export. AML has expertise in handing exports of viarious kinds of cargo by ocean and by air freight. It ensures the timely movement of cargo at the most competitive rates. It takes care of both the complete export documentation formalities and the physical movement of cargo.

·Consultancy on cusTOM s and logistics. AML is well equipped with professionanls to guide cusTOM ers regarding viraous modes of transportation and to help cusTOM ers to optimize utilization of space and save on freight. It acts as liaison with different athorities like the RBI(Reserve Bank of India), Port Authortity of India, India Civil Aviation Regulatory Body,TEXPROCIL(The Cotton Textiles Export Promotion Council of India), DGFT(Directorate General of Foreign Trade), etc., on behalf of clients for various permissions and quotas related to import and export of cargo.This could perhaps be classified as its most valuable service, which it hopes will build up its brand image. The red tape, bureaucracy, lack of work ethic and corruption preclude anyone lacking either clout or established relationship channels (with babus or permanent government employees notrious for their apathy toward fulfilling job duties and with a penchant for bribe taking ) to do business in India.

To enable it to offer these services, AML has partneres with various assocites all over the globe to render forwarding services to all its cusTOM er. It has coverd warehouse space of 1,000 square meters and has the ability to arrange for additional space. It has its own 407 Tata trucks for pickup and delivery of small consignments. It has dedicated a fleet of five low-bed trailers for pickup and delivery of containers. All the field personnel have been perovided with two-wheelers for faster conveyance between various points of work.

AML has grown rapidly and recently established and online presence whereby clients and place orders and check the status of their cargo. So far the increase in sales from the online presence has ont been much. Most of AML‘s clients are spresd out in rural areas and, except for cusTOM ers in Delhi, most do not have access to the Internet.

Today AML is handling an average of 200-plus TEUs(20-foot container equivalents) of imports and exports every month between Delhi and Mumbai (Bombay), which is the mearest big port (a distance of 1,407 kilometers). Luckily, most containers are used for traffic in both directions; moving empties is unproductive. Main items for export are bothroom fittings and spares, machine spares and agricultural equipment, medical equipment spares and chemicals, food processing machinery, furniture and kitchen equipment, and interiors. Main items for import are auTOM obile engines and spares, cotton yarn, food products, electronics, televisions and components, rice, stone for stone crafting,etc.

Recently, one of the AML parters, Mr. S. Singh, was approached by the chairman of Freshfoods, Mr. R. Maan, with a promise of a huge potential volume(150,000 kilogram per month) for importing frozen mushrooms from Europe if AML would build up irs Indian infrastructure to handle such volumes. Freshfoods is the biggest in North India. It was founded 20 years ago by a collective of farmers wanting to find markets for their surplus produce of exotic and non-native foods (like avecados, strawberries, etc.) that did not have much local demand except for five-star hotels catering to mostly foreign tourists.The shift in eating habits in recent years had prompted Mr. Maan to promote mushrooms as a daily food item in a mjor way. To keep the price of imported mushrooms comparable with locally grown food items, huge quantities would have to be

transacted to make use of economies of scale.

Mr. Singh realized that the first order from Mr. Maan was an experiment and that further orders would depend on whether the product caught on or not. AML needed to bet on a huge surge in demand for frozen mushrooms in the region if it wanted to be part of this new trend from the very beginning. Singh‘s partner—Mr. Kumar—is wary of investing heavily on the basis of this one order. After some barganing, Mr. Maan agreed that Freshfoods would ship approximately 150,000 kilograms of mushrooms per month, for 12 months, and will pay $20US per kilogram of mushrooms.

If AML decided to handle this product, it would need to add some equipment to its flatbed trailers to provide power to the refrigeration units on the containers. This is a one- time cost of 9 lakhs (one lakh 5 = $ 222US). With temperatures soaring to 50 degrees Celsius (and the hot wind heat waves), for most of the long hot summer the energy xosts of meeting special conditions could be prohibitive. AML expects them to total about 3 lakhs on an annual basis.

Mr. Singh then made inquiries to his rail carrier about the costs of leasing refrigerated containers. He was disappointed to learn that leasing was almost impossible. The container leasing companies wanted exorbitant rates because there was no backhaul traffic requiring refrigerated equipment and because some areas in North India were too isolated if they needed to send a worker to service malfunctioning equipment. The container leasing company did, however, offer to sell used refrigerated 20-foot xontainers for 7 lakhs apiece and would agree to service them for one year at an additional cost of 1 lakh per container. The uesd containers could be expected to last another 5 years. In a meeting involving Mr. Singh, Mr. Maan, and Mr. Veejay, a carrier representative, it was decided that ten 20-foot containers would be sufficient to handle the projected volume of mushrooms. Eash container would make one round-trip each month. The cost of ocean freight expense from Amsterdam to Mumbai is $1700US for a single 20-foot container. The cost of land transportation per single 20-foot container from Mumbai to Delhi is $300US. Return costs for empty containers from Delhi to Mumba to Amsterdam are half as much, although about 10 persent of the time another cargo can be found that will cover the costs of return transport.

As the meeting broke up, Mr. Veejay said that the mushrooms were not a very dense cargo and that Mr. Singh could be using 40-foot refrigerated containers, which held twice as much as a 20-foot container, though handling costs were less than twice as much. The cost of ocean freight from Amsterdam to Mumbai is $2600US for a single 40-foot container from Mumbai to Delhi is $500US, Return costs from Delhi to Mumbai to Amsterdam are half as much, although about ten percent of the time another cargo can be found that will cover the costs of return transport. Mr. Veejay felt that the 40-foot container would need to be purchased. Five would be needed, with each making one round-trip per month. Containers were only available new, and the cost would be 15 lakhs apiece. Maintenance anywhere was guaranteed for the first year, and the containers had an estimated life of 10 years. Questions

1. What would the first-year costs be to AML if it purchased the used 20-foot containers?How

long would it take to recoup the investment, assuming that the mushroom traffic continued? Investment cost: containers 7 × 10 = 70 lakhs 115 × 2222 ($) re-equipping 9 × 5 = 45 lakhs cost: (1700 + 300 ) × 10 × 12 = 240000 ($)

} transportations

240000 / 2 = 120000($)

maintenance: 2222 × 10 = 22220($) total: 415550$ energy: 3 × 2222 × 5 = 33330 ($)

Revenue: 150000 × 0.2 × 12 = 360000$ total:372000$ 12000 × 10% = 12000

According to the above data, the proposed service is a money loser and the relevant investment cannot ba recouped.

2. What would the first-year costs be to AML if it purchased five new 40-foot containers?How

long would it take to recoup the investment, assuming that the mushroom traffic continued? Investment cost: containers 15 × 5 = 75 lakhs 120× 2222 ($) = 266640$ re-equipping 9 × 5 = 45 lakhs cost: (2600 + 500 ) × 5 × 12 = 186000 ($)

} transportations

186000 / 2 = 93000($) total: 312300$

energy: 33330 ($)

Revenue: 36000$ + 93000 × 10% = 369300 $ 266640 / 56970 = 4.7 years.

3. Is one of the alternatives in questions 1 and 2 riskier? Why?

4. Mr. Singh has read about the supply-chain concept that attempts to identify an link all the

participants from suppliers‘ suppliers to cusTOM ers‘ cusTOM ers. Who are all the participants in the supply chain, a part of which has been discussed in the case?

The participants could include, but are not limit to: mushroom suppliers, such as farmers, mushroom pickers, and mushroom packers, Fredhfoods, consolidators in Amsterdam; transportation carriers bringing the mushrooms to the consolidator; Ocean carrier from Amsterdam to Munbai; transportation provider(s) from Mumbai to Delhi;AML; the container leasing; stores, open-air markets, hotels and restantants in Northern India

5. Logistics partnerships involve sharing costs and risks. What are all the cost and risks that this

venture entails? How might they be shared?

Some of the costs include accessorid and linehaul transportation costs; the investment costs for the containers; energy costs to provide power for the refrigerated containers; reconfiguration costs for the flatcars; maintencance cost for the containers, Another cost, which appears not to have been montioned is the cost of capital.

Some of the relevant risks indule irregularities I product supply due to poor growing conditions for mushroom; product spoidage due to refrigeration problems; lack of demand for the product,higher than experted maintenance for the containers (because of the high temperature in India); theft, perhaps not so much for the mushrooms but because containers can serve as shelter; dramatic changes in the cost of capital; particalrly if capital costs increase subustantially.

The sharing of the costs and risks depends on which porties are impacted by a particular cost or risk , For example, lack of demand for the mushrooms is a risk that might be shared by Freshfoods and AML . Alternatirely, the container supplier, and perhaps the company

installing the power equipiment on flatcars (if different from AML).

6. With some help from your instructor, divide into groups representing most or all of the

supply-chain members identified in question 4 and negotiate an agreement that share the costs, risks, and possible profits and lossed from the venture being considered.

Case 11-2

Case 11-2 Tempo Ltd.

Fatih Terim was in his small office in Antalya, a Metiterraanean port in southwestern Turkey. He looked at the clock on the wall and realized ha had spent the entire afternoon thinking about on thing and one thing only—the most recent meeting with his Romanian business,“connection”Terim had just completed a trip to the Balkans and was in his office evaluating his firm‘s progress in the region. This was necessary since he was thinking of going to Syria for the same reasons that had taken him to the Balkans: finding goods at cheap prices and selling them with handsome markups at home in Trukey or in other neighboring countries.

Term had estabished Tempo Ltd in 1989 in Antalya Terim, then fresh out of Akdeniz University quickly became an entrepreneur. The focus os his business was to buy goods from nearby foreign sources and then find buyers for those products in the domestic Turkish market. The first couple of years were easy for Terim since he was working very hard and the Turkish economy eas soaring. With the fall of communism, Terim saw even more opportunities. He started marketing Turkish-made goods to former communist countries around Turkey and in central Asia.

However, the Turkish ecomomy took a major hit in April 1994. The sudden death of the country‘s president added to the nation‘s political instability. The value of Turkish liar(TL) plummuted against the U. S dollar ($USD) In the following years, the Turkish economy took many more hits, including the financial crisis in the Asian markets, the Russian market crash and most recently, the Argentinean crisis. In 1999, two major earthquakes hit the northwestern part of Turkey, where one-third of the nation‘s 67 million persons reside and which is the heartland of Turkish industry. Although Turkey recovered quickly from the earthquakes potical instability continued and pushed the entire economy into a slowdown. In 1993, one U. S dollar could buy 7,000 Turkish liras. Today, that same one U. S dollar can buy 1,567,000 TL in spite of these discouraging events, the Turkish economy still has opportunities for growth. One reason such a major potential still exists is the simple fact that hard-working, sharp-trading people like Fatih Terim never stood still and kept putting together the best deals they could.

Today Terim‘s company has some connections in almost every European conutry and is working very hard to maintain these connections by generating steady flows of commerce. Terim‘s latest trip was to the Balkan nations of Bulgana, Raomania, and Greece. Terim had entered into modest asles agreements that extend into the middle of next year.

In Ramania, matters did not move as quickly Terim‘s Romanian connection, George Hagi, was not interested in any of the small transactions that Terim was suggesting.Hagi, in an almost mysterious manner, did tell Terim that he looking for a Turkish partner willing to participate in a substantial, although not exactly legitimate, deal. The first aspect was that the cusTOM er wanted to buy Trukish chemicals to be used for fertilizers in agriculture. However, the terms of payment from the prospecive cusTOM ers would be in the formfo barter rather than cash and the goods

bartered for the chemicals would be kereste(lumber). Although barter was a term and practice with which Terim was familiar, he had no idea what to do with kereste. Over the years, Tempo.Ltd, had concentrated its business on small consumer products. However, he wasn‘t going to let a detail like this get in the way of new markets. He knew he could find a market in Turkey for lumber, since little was produced domestically and both new construction and earthquake recon struntion were underway.

What worried Terim was his new cusTOM ers. He learned from Hagi that these new cusTOM ers were either a large state-owned company in North Korea or the North Korean government itself, which is why Terim spent that entire afternoon thinking about just one thing. All day he tried to justity his possible decisions to himself. The problem was that North Korea was a communist regime and, beyond that, North Korea, according to NATO and the United Nations, was a country that provided support to certain terrorist activeties all over the world. In early 2002, United Stated President George W. Bush had described lran, lraq, and North Korea as an axis of evil.‖ North Korea and those with whom it traded were under tight scrutiny from both the United Nations and the United States (which still stationed troops in South Korea)

Terim came up with the excuse that if he didn‘t sell to the North Koreans, someone else would enentually, so why should he give up this money? ?However, the solution was not that easy. Hagi said in his e-mail to Terim that if the negotiations went well a party of North Korean buresucraa would wish to visit Antalya for ―inspection‖ purposes and that Terim would have to cover the costs fo entertainment and accommodations. Those accommodations would range from luxurious hotel rooms to young attractive companions, of both sexes, for business-ralated sinners and receptions. Terim knew exactly what those inspection purposes were. They were pleasure trips for certain bureaucrats in North Korea. Unfortunately, he was also aware that this was the way things worked in Third-world governments. Over the years, he had learned the tricks of the trade, and one thing he knew well was that without the rusvet(bribe: the grease money of large amounts of payments specifically for one-time transactions), such risky situations would end up as a ―no-sale‖ He wondered whather he should ask the Turkish agricultural chemical manufactures to help with the entertainment cost. Also, should he and the chemical manufacturers touch base with each other with respect to the rusvet that would undoubtely be pected by the North Koreans? Terim‘s position regarding rusvet was unclear. Indeed, the chemical manufactures should be expected to give him. and/or Hagi, a kickback for facilitating the safe of chemicals.

―Talk about core competeny,‖ Terim mumcled to himself. To get his mind off these sticky issued, he looked into the logistics costs to move the bartered lumber from North Korea. He would need to know those costs before proceeding. He had a couple of options.

The first option would be to ship the lumber by sea from Wonsan, North Korea, through the Sea of Japan, across the Iridian Ocean, through the Suez canal, and into the liman(port) of Antalya, Turkey. This would be the perfect solution, except, he sudenly realized, he would not be able to bring that lumber into Turkey legally because of trade sanctions against North Korea. Hence, this option was dropped.

His second option would be to send the lumber to a country where its entry would be legal. The country where its sntry would ba legal . The country to which the kereste could be shipped legally was none other than Romania, one of Turkey ?s neighbors on the Black Sea. The reason was hidden in history. Sinc their communist years Romania and North Korea had had strong ties that remained nearly intact after the fall of communism in Romania. So lumber could be loaded on

to a geim(ship) and could be shipped to Romania via the Dardanelles and the Cosphorus (the two straits that make up the gateway to the black Sea) and finally to the port of Constantza, Romania in the Black Sea. Once there, the lumber could be covered by new documents and enentually the origin of the goods could ba stated as ―Romania‖ not ―North Korea.‖ The lumber could then move by tir (truck) to Turkey. This sounded like a feasible solution, but how much would such an operation cost? Terim recalled that Hagi had said the redoing documents in situations like this cost about 16,000,000,000 TL, including resvets.

Terim‘ s mind then shifted to a third option. From Wonsan, the lumber could be shipped to a port in Syria, in this cade Larakia, From there, tirs could haul the lumber to lskenderun at the southeastern border of Turkey. Because the border at Iskenderun is the most laxly guarded border in Turkey, small rusvets to low-ranking officers at the gates would allow the kereste to enter Turkey without any problems. The rusvets would be about 10 percent of the kereste shipment‘ s value.

The same could be done at the Liman of Antalya. However, the chances of getting caught were much higher. If Tempo Lts, were caught red-handed, it would be fined a sum of double the total value of goods entering the country. Thus, this was a fourth, but diacarded, option.

Only two options were feasible, and each came with certain riskd, One was to ship the kereste to Romania, have new documents drawn, falsify the shipment‘ s origin, and then send it to Turkey by tir. The other was to send the kereste by ship to Syria, truck it to Turkey, and bribe cusTOM s inspectors at the Turkey border. Terim was initially concerned with the logistics costs of getting the kereste inside the Turkish border. The kereste would be of various dimendions, bound together by metal straps into bundles measuring 1 meter by 1meter by 5 meters, and the North Koreans would deliver and load the kereste aboard a break-bulk vessel in a North Korean port.

If Terim could get the kereste inside Turkey, it should sell for 783,500,000,000 TL The Turkish chemical manufacturers expect to be paid 60 days after the chemicals leave the Thukish port, which will be same date kereste leaves North Korea.

Terim fazed at his notes, which were full of numbers and currency exchange rates. Ocean transportation costs for Gemi(Shipping lines require payment in U. S dollars): Wonsan to Constantza $42,000 USD Wondan to Latakia $33,000 USD Suez Cannal charges $3,100 USD Tir:

Constantza into Turkey $15,000 USD Latakia into Turkey $12,000 USD

Handing fees at the Liman (Syria or Romania) 1.25% of the total value of goods Generating false 16,000,000,000TL Romania-origin doucments

Projected amount of rusvet at Syrian-Turkish border 10 persent of shipment‘ s value Currenty exchange rates $1 USD = 1,567,000 TL

Option 1: Wonsan/Constantza/Turkey would take 43 days Option 2: Wonsan/Latakia/Turkey would take 22 days Questions

1. Should Terim let somebody else complete the transaction because he knows that if the doesn‘t

sell to the North Koreans someone else will?

2. What are the total costs given in the case for the option of moving via Romannia? Ocean Transportation to Constanza Snez Canal charges Turkey Handing False douctment Total 42000 3100 1500 783500,000,000÷1567000×1.25% = 6250 10211 76561 3. What are the total costs given in the case for the option of moving via Syria? Ocean Transportation to Latakia Snez Canal charges Turkey Handing rusvet Total 33000 3100 1200 783500,000,000÷1567000×1.25% = 6250 500,000×10% = 50,000 104350

4. Which option should Terim recommend? Why?

The Romania option is nearly $30000 chaper than the Syrian option, thus solely from the perspecstive of the cost, the Romania option might be prefered, However, the Romania option takes 3 weeks longer to complete than does the Syrian option. Moreover, the Romania option appears to be risher than the syrian one in sence that things might go away in the redocumentation process.

5. What other costs and risks are involved in these proposed transactions, including some not

mentioned in the case? ① The entertainment of North Koren officials can be viewed on both a cost and a risk. ② There‘s also a chance that some of the rusvet ―fees‖might unexceptedlly increase

―captive‖nature. ③ A more general risk for these proposed transtions is the volatile polatical situation in the

Middle East.

6. Regarding the supply chain, how-if at all should bribes be included? What functions do they

serve?

From a broad perspective, the prupose of bribes should be to facibitabte the completion of international transactions. One is the legal perspective, quite simple in some countries, bribes , are theretically illegal. A second perspective understand that praically bribes are essential for completion of international transactions.

7. If Terim puts together this transaction, is he acting ethically? Discuss.

8. What do you suggest should be done in order to bring moral into the situation so that the

developing countries are somewhat in accordance with Western standerds? Keep in mind that the risks involved in such environments are much higher than the risks of conducting business in Western markets. Also note that some cultures see bribery as a way to better distribute the wealth among their citizens.

Case 14-2

Case 14-2 Trigo Export Co., Ltd

The Trigo Export Company, Ltd., of Montreal, was appointed to be the manufacturer‘s export agent for the Ziola Tractor Company, Ltd., of Winnepeg. The tractor company was best known for its snow blowers, but the same 41 / 2-horseprower engine and frame were modified to become a graden tractor. The Trigo Company specializes in agricultural implements sold in Central and South America, and its agreement with Ziola Covered only sales to that area.

Trigo‘s sales force was aggressive and, after only two weeks, got the chance to bid on a large shipment of garden tractors to be delivered to Belem(a Brazilizn port near the mouth of the Amazon).The cusTOM er was charitable organization, and the only quanitities mentioned were ―somewhere between 40 and 100 units‖ of the Ziola Speedwagon model. After the shipment arrived in Belem, the tractors would ba distributed by the charity to various settlements in the Amazon basin. Trigo‘s sales representative advises his home office that he thought price per unit would be an important criterion that the buyer would use in evaluating bids. He also said that two U. S. firms and a Korean firm were submitting bids.All bids would be FAS(free along-side) vessel in Belem.

He said that Trigo should quote prices for(a) 40 units;(b) 100 units; and (c) whatever quantity between 40 and 1000 that had the lowest cost per tractor, In case either 40 units or 100 units happened to have the lowest cost per unit, quotes would be needed for only (a) and ( b).

Trigo‘s staff, with some help from people working for Ziola, began gathering facts,Following are some of them:

1. No import duties, permits, or licenses are requires.

2. Documentation costs would be CAN $250 per shipment.

3. Ziola would sell to Trigo any quantity of trantors up to 500 at CAN$700 each, FOB(free on

board) plant (at Winnipeg).This price would include packaging for export and a separate, related bar code for each carton in the shipment. The packaging materials consisted of at least 40 persent recycled contents. Ziola would load the packaged tractors into 20-foot intermodal containers and deliver the loaded containers to the railers and deliver the loaded containers to the railroad‘s Winnipeg container station.

4. Trigo had to select a port. Canada has two major East Coast ports, Montreal and Halifax.

Montreal is positioined better to handle traffic to and from Europe, while Halifax is the northerly stop used by vessel lines calling along the northerly stop used by vessel lines calling along the Athantic Coast.Trigo decided to use the port of Halifax.Comblined rail/ocean costs through this port were the lowest. Sailing services were less frequent than at some U. S. North Atlantic ports, but time saving did not appear to be an issue, Three scheduled liner operators—Frota Amazonica; S. A.; lvaran Lines; and Hanjin Shipping Co.—all quoted similar rates. Their rates included port charges in Halifax and unloading in Belem. Port charges in Belem would be separate( but would be assumed by the buyer of the tractors).

5. Rail charges from Winnipeg to the container terminal at Halifax were CAN$400 per20-foot

container.This was cheaper than using a trcuk.

6. The exterior dimensions of each packaged tractor was 1 meter by 1meter.The Weight of each

tractor was 200 kilos, and the package weighed 20 kilos for a total of 220 kilos per tractor.(Shipping charges by weight include both the tractor and its package.)

7. The interior dimensions of the 20-foot containers are 2.35 meters wide, 6.12 meters long,

and2.50 meters high.

8. Ocean rates from Halifac to Belem for loaded containers carrying cargo of this type are

CAN$110 per ton (of 2,200 pounds). However, the ocean lines also use the rule of the measurement ton, which means that if a cubic meter weighs less than 1,000 kilograms, the cubic meter shall be considered as weighing 1,000 kilograms. Frenght charges would have to be paid just before the cargo was loaded aboard ship.Rail transit time from Winnipeg to Halifax was 5 days.

9. Insurance charges were 1 persent of the shipment‘s value while the goods were in Canada and

2 persent while they were at sea.

10. Ziola expected to be paid the day the loaded containers were delivered to the railroad in

Winnipeg. The Brazilian buyer would pay for the trantors as they were unloaded from the ship in Belem. Trigo would own the tractors for an estimated 25 days: 5 from Winnipeg to Halifax, 2 in Halifax, 17 at sea, and 1 in Belem. Trigo‘s line of credit at the Bank lf Montreal was curuently costing 12 persent interest annually.

11. Trigo wanted to mark up all costs by 10 percent to cover its overhead and profit.

Questions

1. Ziola‘s export packaging materials consisied of at least 40 percent recycled content.Should

this be mentioned in the quotation given to the potential Brazilian buyer?

It would not be hurt in case somebody reviewing the bid happened also to be interedted in environmental protection. However,note that they are buying tractor to use in Brazil.

2. Each package in this shipment will be bar coded.Is this an example of supply-chain

intergation?Why or Why not?

It is an example of supply-chain integration, although one again is uncertain how useful this might ba in the Brailain market for tractors. 3. What price should be quoted for 40 tractors? Type of cost Tractor Rail to Halifan Ocean feight Insurance on land Insurance on sea Documentation Subtotal Interest Subtotal2 10% markup Total 单价

Cost (CAN$) [40] 40 × 700 2 × 400 40 × 110 28000 × 1% （28000 + 800）× 2% 250 34360 34360 × 12% × （25 / 365） 34588 3459 38047 951

4. What price should be quoted for 100 tractors? Type of cost Tractor Rail to Halifan Ocean feight Insurance on land Insurance on sea Documentation Subtotal Interest Subtotal2 10% markup Total 单价 Cost (CAN$) [40] 100 × 700 5× 400 100 × 110 70000 × 1% 72000× 2% 250 85390 85390 × 12% × （25 / 365） 86092 8609 94701 947

5. Is there another quantity between 40 and 100 where the costs per tractor are lower? If so, what

is it? What are its costs per tractor? Type of cost Tractor Rail to Halifan Ocean feight Insurance on land Insurance on sea Documentation Subtotal Interest Subtotal2 10% markup Total 单价 Cost (CAN$) [40] 96 × 700 4 × 400 96 × 110 67200 × 1% 68800 × 2% 250 81658 81658 × 12% × （25 / 365） 82329 8233 90562 943 6. For how long into the future should the price quote be made( i. e., for how long should Trigo

agree to deliver at a certain price)? Why?

This is depend in which currency the quote was being made and that currency‘s anticipated stability.Bofore marking the bid, the potential buyer might be asked the length of time the quote should be for, in case that process has to pass through several steps. 7. In what currency should Trigo ask to be paid?Why?

The two options appear to be the Canacilan and Brailian currencies; Trigo probably should ba paid in the more stable currency. One should track values of the Canadian and Brailian currencies over a certain time period, such as a year, in order to determine their ralation stability.

8. After preparing the bid , Ziola calls Trigo and says that they are thinking of redesigning the

tractor frame so that it can be disassembled, taking up half the space. A Ziola Speedwagon could fit into an export package measuring 1 meter by meter by 0.5 meter. The weight of the packaged tractor would continue to be 220 kilos. By how much, if at all, would this new package size reduce the answers for quertions 3 and 4 ?

Cubic dimentions (not might) deterimine the shipment‘s transportation costs. In general terms, packing the tractors so that they would be twice as dense would reduce the transportation costs per tractor by one-half.However, if it is possible to stack the tractor five high, then the containers could hold 60 trantors, thus further reducing cost. Type of cost Tractor Rail to Halifan Ocean feight Insurance on land Insurance on sea Documentation Subtotal Interest Subtotal2 10% markup Total 单价 Cost (CAN$) [40] 60 × 700 400 60 / 2× 110 42000 × 1% 42400 × 2% 250 47218 47218 × 12% × （25 / 365） 47606 4761 52361 872 计算题考试范围：

在第8、9章出题，很可能是有关中心算法、EOQ、以及边际分析（Marginal analysis）的问题。