Question
Their last shipment was a large consignment of 10,000 pcs of high-end leather spring jackets for women. Per unit, the cost was negotiated at $40
Their last shipment was a large consignment of 10,000 pcs of high-end leather spring jackets for women. Per unit, the cost was negotiated at $40 CAD (FOB Price) from Vietnam. The supplier prepared 100 pallets and the palletization charge per pallet was $10. The company paid 18% import duty and tax to CBSA. The total shipping and transport cost of the consignment (Less duty) was $10,000 for 2 x 40' Containers. Insurance and bank charge was $3,000. The freight forwarder bill was $400, Pre-shipment inspection charge was $2,000. The senior sourcing analyst flew to the factory before the pre-shipment inspection. His flight, accommodation, and 5 days' expenses were $2,000. For this total consignment work company incurred $2,000 as the employee's salary and expenses. The shipment was received in the Mississauga 3PL distribution center and was stored for 1 month before shipping out to the retail stores. 3PL standard charge per container receiving was $400, there was a total of 100 pallets inside containers that were received and stored in the warehouse. Per pallet storage charge is $20/month. Labelling and Outbound charge per pallet are $5/pallet and per pallet LTL shipping/transportation charge to retail stores anywhere within the province is $100. Warehouse also charges $1500 for the warehouse management system as a monthly fixed cost. For this shipment that cost was calculated at $300. As per the financial report of the company last year (2022) the company sold $20 M (Cost of goods sold). Last year's opening inventory was $4 M and year-end inventory was $6M.
For this shipment Source Metrics Dots opted for a bank loan with a 5% interest rate.
The retail sell price for each jacket was $150. After careful demand planning and forecasting the company ran out of stock at the end of the season. It is estimated company could sell additional 1500 pieces of jackets if those were in stock.
Requirements:
- Find out the total and per unit ordering cost of this shipment.
- Find out the total and per unit carrying cost of this shipment.
- Find out the total stockout cost of the shipment.
- Find out the total and per unit landed cost of the shipment.
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