Question
Please assist with the question 9 listed at the end. One of the most highly demanded ingredients are oranges, which can be grown and harvested
Please assist with the question 9 listed at the end.
One of the most highly demanded ingredients are oranges, which can be grown and harvested in a variety of locations around the globe. It is essential for you to secure a supplier quickly because the standing contract for oranges is expiring soon, and without one, you will be unable to guarantee the availability of some top selling products. The demand for orange supply is relatively consistent throughout the year, according to demand planners. When purchasing oranges, you consider many factors to ensure that you are choosing the best fruit at the best price. To aid in decision making, you will calculate total landed cost per pallet of fruit from two supplier options (one international and one domestic). " Naranja International, located in South Africa, offers oranges at a purchase price of $1.03 per pound. First, the oranges need to be shipped to the USA via waterway. The ocean freight costs are $3,500 per container and the import duties from South Africa are 3% of the value of shipped oranges. Once arriving at the port of Long Beach, California, drayage costs are $275 per container. You momentarily store the oranges at a local warehouse at a rate of $6.00 per pallet. The container is picked up the next day and travels intermodal (through a motor carrier) to your facility at a cost of $160 per container. Upon arrival at your facility, you've calculated costs of $6.00 per pallet for receiving and quality. Based on historical averages, 2% of your container of oranges will spoil and 3% will be wasted in transport. The administrative costs to successfully manage a relationship between your organization and Naranja International are estimated at 9% of the value of a container of shipped oranges. These costs account for the intricacies of dealing with an offshored supplier on a different continent, with a different language and culture than what is found at Smoothie City headquarters. Each case of oranges is 25 pounds, with 40 cases per pallet and 15 pallets per container." S " LB Family Farms, located in California, offers oranges at a purchase price of $1.23 per pound. The oranges are shipped FOB Shipping Point to your facility via motor carrier (TL) at a rate of $155 per load. After arriving at your facility, you've calculated receiving and quality costs at $6.00 per pallet. You estimate that 1.5% of the truckload of oranges will spoil and 1% will be wasted in transport. The administrative costs to successfully manage the relationship between LB Family Farms and your organization are estimated to be approximately 4% of the value of a truckload of shipped oranges. Each case of oranges is 25 pounds, with 40 cases per pallet and 25 pallets per truckload. "
9. A challenge with sourcing natural products is that they are subject to unpredictable conditions that may impact availability or crop yield. What are some things your company can do to mitigate this ongoing risk? (3 points) |
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