Joe Hanaman is trying to capture the attention of holiday shoppers for EZ-Shop, an electronics discounter with 1,500 stores in Canada and the United States. Joe envisions being the first retailer to offer its own virtual reality (VR) headset and break the $250 price barrier. He believes that the VReal will be a game-changer, not only for the price point, but for its high resolution, realistic 3D experiences, and growing list of game titles. The low profile, highly comfortable VR headset is projected to sell 350,000 units during the holiday season and 25,000 units per month thereafter. After much effort to ensure feasibility of his design, evaluate prototype quality, and compare supplier capacity, Joe targeted three options. Each supplier offers a high-quality VR headset that meets EZ-Shop specifications at a reasonable cost per unit. However, each supplier is in a different country, which gives Joe some concerns. He knows that there is nothing virtual or trivial about the global delivery costs, Incoterms risks, and potential delays that accompany each proposal: Option 1purchase the VReal headsets from Retina Electronics in Nagano, Japan, a long-time supplier of products to EZ-Shop. Retina works on an open account basis and promises to make shipments