Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question: Write 2-4 paragraphs about the advantages and disadvantages of shipping via LCL service that is arranged by the seller. This suggests that these components

image text in transcribedimage text in transcribed

Question: Write 2-4 paragraphs about the advantages and disadvantages of shipping via LCL service that is arranged by the seller. This suggests that these components are also likely transported by sea freight in a shared container with other cargo.

You have been hired as the Director of Transportation for Fat-E. Fat-E is three-year-old firm, founded by three university friends based out of Ottawa, Ontario. The company makes electrically powered bicycles made for off-road trail riding. The Fat- E is unique in that it is based on the "fat tire" bike already on the market. Fat-E's model includes an electric motor and with a heavy-duty transmission that automatically changes gears while moving. There are other bikes in this market, but the Fat-E is unique in that the transmission is electronically controlled, saving precious battery life power when in use. The firm has begun to build a relatively loyal customer base, and markets itself to offroad cycling enthusiasts, and off-road cycling clubs. Fat-E started originally by manufacturing their first models on their university campus in space provided by their entrepreneurial centre. The owners quickly outgrew this space and moved into a small industrial unit just outside Ottawa (Kanata). Since then, the company has grown to expand into the two adjacent units in the industrial complex. From this location they managed the entire business including 24 permanent full-time staff (mixed between administration, production, and warehousing). Business is strong and Fat-E has now outgrown the space they currently occupy and unfortunately there are no more adjacent units in the industrial complex for them to consider expanding into. The bicycle is comprised of a heavy duty steel frame, weighing 48 pounds, two oversized rims with oversized "fat" tires, a battery that is integrated into the frame, and the patented transmission that has been integrated into the frame at the rear wheel. When fully assembled, the finished bike weighs 84lbs. It is packaged and shipped with front wheel off and occupies a corrugated box: dimensions: 48 inches long 12 inches wide 30 inches high. The Fat- E is not palletized, and ships individually via courier. The bike contains a lithium-ion battery and due to dangerous goods regulations cannot be shipped by air. There are four primary components to the bicycle - the frame, battery, gears and wiring, and the wheels. Each is sourced from an individual supplier outside of Canada: The steel frame is manufactured in China and shipped via LCL. The battery is manufactured in Tennessee (USA) using LTL service paid for by the battery supplier. The gears and wiring are purchased in from a supplier in France using LCL service that is arranged by the seller. The final component, the wheels, are sourced from a supplier in Mexico City (Mexico). If Fat-E orders six or more pallets of wheels the supplier includes the cost of freight in the price of the wheels. If Fat-E orders less than six pallets the supplier arranges for LTL service but adds this expense on to the invoice to Fat-E

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Inventory Optimization Models And Simulations

Authors: Nicolas Vandeput

1st Edition

3110673916, 978-3110673913

More Books

Students also viewed these General Management questions

Question

Explain why countertrade is often viewed as a necessary evil.

Answered: 1 week ago