CASE STUDY INDIVIDUAL WORK SCREEN PLUS CASE

Screens Plus (SP) is a manufacturer of high-end computer monitors. The company assembles Ultra HD computer monitors in Calgary, Alberta and sells them online and through specialty electronics stores. The most popular model retails for $4,995 and SP bundles the monitor with high fidelity audio components that are purchased from external suppliers. Two components that are currently bundled are a set of external speakers and a package of specialized power supplies and HDMI connecting cables. Due to ongoing delivery challenges with their Pacific Rim suppliers and carriers, SP has decided to buy from suppliers in closer proximity to Calgary. The speakers will be supplied by an electronics company with operations in Juarez, Mexico and the connecting cables will be purchased from a manufacturer in San Francisco, California. The purchase contracts have been negotiated in principle. The speaker supplier sells its products FOB Destination, Freight Collect and Allowed. The receiver supplier only sells its products FOB Origin, Freight Collect. The remaining issue for the SP transportation 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:

Manufactured	Jaurez, Mexico	San Francisco, California
SP purchase price	$175 CAD per set	$225 CAD per unit
Weight	28 pounds	5 pounds
Dimensions	30" L x 18" W x 18" H	18" L x 8" W x 4" H
Characteristics	Sturdy, bulky, not easily damaged	Compact, vibration sensitive, theft risk
Freight Terms	FOB destination, freight collect	FOB Origin, Freight Collect

	and allowed
Option 1	Weekly LTL delivery 200 units $2,485 CAD Cost per delivery	Weekly ground delivery 200 units $2,169 CAD Cost per delivery
Option 2	Twice per month TL delivery 400 units $2,946 CAD Cost per delivery	Twice per month TL delivery 400 units $2,946 CAD Cost per delivery

Short Questions 1. What responsibilities, control, and costs does SP bear under each of the FOB terms offered? 2. What is the delivery cost and landed cost per unit for each speaker delivery option? 3. Which delivery option do you recommend for the speakers? 4. What is the delivery cost and landed cost per unit for each receiver delivery option? 5. Which delivery option do you recommend for the receivers? 6. What other supply chain issues and costs must SP take into consideration when making these transportation decisions?

Broad Questions 1.Describe the potential social impacts that accompany both choices and recommend strategies to manage these for each supply location. 2. Describe the areas of major risk that pertain to this logistical plan if the Mexican supplier was to be used and propose strategies to manage these. 3. Describe the elements of compliance that apply to importing the product assuming the US suppler was to be used.