CASE 11.1 Vibrant Video Vibrant Video IV2) is a manufacturer of home theater projection systems. The company assembles Ultra HD projectors in Portland, Oregon and sells them online and through specialty electronics stores. The most popular model retails for $4,995 and V2 bundles the projector with high fidelity audio components that are purchased from external suppliers. Due to ongoing delivery challenges with their Pacific Rim suppliers and carriers, V2 has decided to buy from suppliers in closer proximity to Portland. The speakers will be supplied by an electronics company with operations in Tijuana, Mexico and the receivers will be purchased from an audio lab in Manchester, New Hampshire. The purchase contracts have been negotiated in principle. The speaker supplier has given V2 two shipping choices under FOB Destination, Freight Collect. The receiver supplier only sells its products FOB Origin, Freight Collect. The remaining issue for the V1 transporta tion director is to evaluate the delivery options that her analyst recommended for each product and make a decision. Relevant information is provided in the following table: SPEAKERS RECEIVER Manufactured in Tijuana, Mexico Manchester, New Hampshire purchase price $175 per set $225 per unit 5 pounds Weight 28 pounds Dimensions 30" (L) x 18" (W) x 18" (H) Characteristics Sturdy, bulky, not easily damaged Compact, vibration sensitive, theft risk FOB Destination, Freight Collect Freight Terms FOB Origin, Freight Collect and Allowed Option 1 Weekly LTL delivery Weekly Ground delivery 200 units 200 units $2,485 Cost per delivery $2,169 Cost per delivery Twice per month TL delivery Option 2 Twice per week airfreight delivery 400 units 100 units $2,946 Cost per delivery $2,411 Cost per delivery