MAKABEH S.A.O.G. is a company based in Thumrait (Oman) that makes mechanical components for trucks. The production and storage are both based in Thumrait. It has just received an order from a multinational to start a mass-production of all the front brakes of a new model truck that is about to be launched. According to the tender, MAKABEH S.A.O.G. must supply 1200 brake units a day (600 correspond to part code PS3476FRT543789DR, for the right front wheels of the vehicle and 600 correspond to part code PS3476FRT543789IZ for the left front wheels). The weight of these brake units is 14.5 kgs each (incl. box).

The goods must be supplied each working day from Saturday to Thursday in the factory that the multinational has in Thumrait, Oman. The initial duration of the contract is set at one year (in other words, 249 deliveries). Once the brakes have been manufactured, they are packed in reusable parallelepiped plastic boxes adapted to the component, with a lid, and outside dimensions of 30 x 40 x 25 cm (the last measurement corresponds to the height). Each box can hold a complete set of brake equipment.

Independently of the labelling, the boxes are yellow or orange corresponding to the right or the left wheel, to make it easy to work with in logistics and sales. The boxes will be stacked on wooden pallets (europallets) measuring 120 x 80 x 15 cm. The weight of the pallets is 10 kgs per pallet. The boxes are stacked in layers separated by a 6mm thick sheet of plywood 120 cm x 80 cm x 0.6 cm thick. The pallets may not be stacked on top of each other. Once the pallet is fully loaded, it is wrapped. The weight of both foil and sheets is negligible.

The maximum height of the pallets is limited to 150 cm since this is the size of the space for pallets in their dynamic shelves in the MAKABEH S.A.O.G. warehouse. However, MAKABEH S.A.O.G. has a problem in achieving this major contract: the production plant in Thumrait is not equipped to perform the hardening treatment required by all the brakes and has to subcontract this operation to another company.

There is a company in Saudi Arabia called FARAMIL that can apply this treatment in Medina, Saudi Arabia.

MAKABEH and FARAMIL have already reached a pre-agreement by which the amount of the product required every day will be delivered to the factory designated for treatment and will then be returned duly treated after two days to be repacked and palletised in the same conditions as when it was delivered. The Logistics Manager of MAKABEH is prepared to organise the transport

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Transport Management (BUSS B 3001) Spring 2021–CW 1(Assignment 1) Session A,B,C,D&E-QP

in light of the operating conditions. To do this, he has contacted different logistics service providers and has asked them to bid for the contract.

The logistics operator must collect the product every day at MAKABEH and transport them to the FARAMIL plant in Medina (Saudi Arabia) and collect the treated product there to take it back to Thumrait (Oman).

In addition, the logistic manager of MAKABEH S.A.O.G. will take along the winning logistics operator to help him to convince the multinational of the logistical viability of the process.

By MAKABEH accepted modes of transport

The following modes of transport are available for this concept:

 Airlines

 Shortsea

 Road transport

Airlines:

There is a daily flight from Salalah (Oman) to Jeddah (Saudi Arabia) v.v. what is also open for transport of cargo.

The service will be executed by a Boeing 787 what can carry ULD’s types LD4 and LD11.

Shortsea:

There is a daily ferry service between Salalah (Oman to Jeddah) Saudi Arabia v.v. what is open for containers and Ro-Ro. (non-dangerous goods). Closing time for acceptation the container before departure is 6h.

The sailing distance is 1300Nm.

 Road:

The current situation in Yemen is not stable. Waiting time at the borders is from 6-48 hours but can change rapidly. During the nights it is unsafe to drive outside cities.

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Transport Management (BUSS B 3001) Spring 2021–CW 1(Assignment 1) Session A,B,C,D&E-QP

 Other data for the exercise:

Containers:

The weights of the containers are:

 20ft container 2.5 tons

 40ft container 4.0 tons

 LD4 n.a. max payload is excl. container weight

 LD11 n.a. max payload is excl. container weight

Measure of the containers:

All containers either ISO or standardized.

Road transport:

The maximum tons we can transport in both Saudi Arabia and Oman by road is 32 tons. The weight of the truck is

 With container chassis: 13 tons

 With aluminium semi-trailer + chassis: 15 tons

In case of intermodal transport both Oman and Saudi Arabia accept 10% (3 tons) extra gross weight within road transport.

Technical data of a truck: No of axles: 5 No. of tyres: 12

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Transport Management (BUSS B 3001) Spring 2021–CW 1(Assignment 1) Session A,B,C,D&E-QP

Max. payload: 32 tons

Line haul price per km is: OMR 0.44

Pre- posthaulage price in Oman is OMR 0.60 per km.

Pre- posthaulage price in Saudi Arabia is SAR 4.3 per km.

Prices are incl.

- max. loading and unloading time of 2h each;

- toll

Crossing the Yemen border will cost an extra fee of

2x OMR 100 per single trip.

IMO goods 290

390

410

OMR 20 SAR 90

Costs for a LD4 container: OMG 375

Costs for a LD11 container: OMG 500

Pre- posthaulage from Thumrait to Salalah incl. loading of a LD container is OMG 140 Pre- posthaulage from Jeddah to Medina incl. loading of a LD container is SAR 2000 Transsittime doordoor is 3 days.

Average speed:

Shortsea

OMR per single trip 20ft container

40ft container Semi-trailer

35 km/h

  Loaded

  250

  350

  370

Empty 150 250 270

                    Average speed:

Container handling:

In Oman: From land to the vessel or v.v.:

In Saudi Arabia: From land to the vessel or v.v.:

Airlines

12Kn/h

single trip single trip

 Transport Management (BUSS B 3001) Spring 2021–CW 1(Assignment 1) Session A,B,C,D&E-QP

Answer all the questions:

Task 2

Identify [with brief explanation] the roles and responsibilities of the logistic operations’ company that won the contract of transporting brakes from MAKABEH to FARAMIL and from FARAMIL to MAKABEH . 

Create the SWOT analysis of all the modes of transport (Road transport, Short Sea and Airlines) as mentioned in the case study. Based on the SWOT analysis: a. Decide which modes of Transport you will use for the Transportation of brakes from MAKABEH to FARAMIL and from FARAMIL to MAKABEH .

b. Justify your answer. 

Explain how you will organize the transport from MAKABEH to FARAMIL and from FARAMIL to MAKABEH? Use a drawing/ picture to support your explanation.

Differentiate between standardization and normalization. Support your answer by mentioning one example of each.

Conduct a desk research (using secondary sources) on ISO organization: Your research should address following points:

 Definition.

 Importance.

 Classifications and standards.

 How does ISO regulations affect the transport industry?

References, at least six references in C.U. Harvard Referencing Style. Report Structure and Format.