Which delivery option do you recommend for the speakers

Assignment Help Operation Management

Reference no: EM132200004

What responsibilities, control, and costs does V2 bear under each of the FOB terms offered?

What is the delivery cost and landed cost per unit for each speaker delivery option?

Which delivery option do you recommend for the speakers?

What is the delivery cost and landed cost per unit for each receiver delivery option?

What other supply chain issues and costs must V2 take into consideration when making these transportation decisions?

REFERENCE: CASE 11.1 Vibrant Videos

Vibrant Video makes home theater projection systems. Vibrant Video needs to purchase speakers and video receivers to assemble these home theater projection systems. V2 has had trouble with suppliers of these speakers and video receivers from Southeast Asia. Transportation companies have also been a problem for V2. Speakers will have to be shipped from Tijuana, Mexico to Portland, Oregon and the supplier allows the speakers to be ships with the FOB Destination and Freight Collect Freight terms. They offer two delivery options with weekly LTL deliveries that will deliver 200 units for $2,485 or have twice monthly TL deliveries with 400 units for $2,946. For receivers, V2 will buy them from a supplier in Manchester, New Hampshire. Their receivers supplier offers the freight term FOB Origin, Freight Collect. They also offer two delivery options of weekly ground transportation of 200 units for $2,169 and twice weekly airfreight delivery of 100 units for $2,411 per delivery.

Reference no: EM132200004

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