...Export Pricing – Cost Plus Approach Exercise 1) Given an Ex-Works Unit price of $ 150 calculate the following four prices to quote a new client for a direct sale involving no commercial agent. FOB -Barcelona 153.975 Carriage to Wharf/Dock/Place of Loading = 1.5% of unit cost 150*.015=2.25$ Customs Clearance = 0.15% Unit Cost. 150* .0015= 0.225$ Additional Packaging / Labour for transport 1% of unit cost. 150* .01 = 1.5$ (150+2.25+.225+1.5)=153.97 CPT -Bangkok Airport 190.6 Air freight = (3x((60x80x80)/6000)) = 192kg x 5 = 960USD/kg /30U = 32 Air documents 1% of FOB unit price= 1.54 Transport/Fuel contingency 2% of FOB unit Price = 3.08 (153.97+32+1.54+3.08)= 190.59 CIF -Port of Bangkok 165.6 Maritime Freight cost = ((3x((60x80x80)/3000))= 1152kg x 165 = 190.08USD/Ton /30= 6.34 Maritime Document Fees = 1% of FOB unit Price = 1.54 Marine Insure Insurance Premium = 0.5% of FOB unit price = .77 Transport/Fuel contingency 2% of FOB unit Price = 3.08 (153.97+6.34+1.54+0.77+3.08)= 165.6 DDP -Customer’s store in Bangkok 193.7 (10) * Import Duty of 15% = 24.84 * Customs Clearance Charge of 0.5% per unit = 0.83 * Delivery Charge of $ 1.5 per unit. =2.48 (165.9+24.84+0.83+2.48)=193.7 2) Comment on the incidence of transport in each case and give examples for the potential validity...
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... A 50 3/4= 75% 10:1 B 150 20% 4:1 C 300 5% 2:1 WH 450 25% How many C items? B+C = 500-50 = 450 -> 2/3*450 = 300 C items Avg Val Inv for B? Annual Sales = 100%-75%(A) – 5% (C) = 20 % (B) 20%*10M = 2M/4 =500,000 Avg Val of Inv in WH? (B= 500K) + (C=.05*10M/2=250K) = 750K Calculate TTL cost for Shipments: Engine = 1000 lbs = 10 CWT TTL demand CA plants 10 engine/week, 1 shpmnt per week, Trans cost= 18 $/cwt + 100 fixed per shpmnt TTL annual cost of current plan? 10 eng/week * 10 cwt/engine * 18 $/cwt + 100 $/wk (10*10*18 + 100) * 52 = 98,800 $/ year New Lrg shipment + reg Shipment? 95,160 $/yr Lrg: 12 $/cwt + 200 fixed, 1 shpmnt / 4 weeks (40 eng/4 wks *12 $/cwt *10 cwt/eng*200/4 wks )x 52/4)=$65,000 Reg: 5 $/cwt + 80 fixed, 1 shpmnt/week (10 eng/wk * 5 $/cwt * 10 cwt/eng * 80 $/wk) x 52wk/yr = $30,160 Prof = Rev – Cost: Each % increase est. to increase rev 400k Current LVL: 90%, cost = 2.5 M $/yr Alt 1 LVL: 92%, cost = 3 M$/yr Alt 2 LVL: 95%, cost 4 M $/yr Alt 3 LVL: 99%, cost = 6M $/yr Alt 1 Profit Increase = 2*.4 – (3-2.5) = .3 M Alt 2 Profit Increase = 5*.4 – (4-2.5) = .5 M Alt 3 Profit Increase = 9*.4 – (6-2.5) = .1 M Shortest Path: A-C-D-E-F length = 17 Slvd | Nrst Unslvd | TTL Dis | Nrst | Min Dist | Path | A | C | 2 | C | 2 | A-C | A | B | 4 | B | 4 | A-B | C | D | 5 | | | | A | D | 6 | | | | B | F | 20 | | | | C | D...
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...Economic Benefits from Air Transport in Nigeria Nigeria country report Acknowledgements Oxford Economics gratefully acknowledge the help that we received from the International Air Transport Association (IATA) in preparation of this report. Through a survey conducted by IATA many organisations across the aviation industry supplied us with data that has formed an integral part of our analysis. In addition, the Airports Council International (ACI) very kindly provided us data on the economic activities at airports. We would like to thank all these organisations for their generosity in supplying this data, without which this report could not have been written. A note on the data reported in the report Unless otherwise stated, the numbers reported in this report relate to the calendar year 2010. Oxford Economics 2012 v1.1 2 Nigeria country report Contents Facts & figures.......................................................................................... 4 1 1.1 1.2 Consumer benefits for passengers and shippers ......................... 7 Consumer benefits ..................................................................................... 7 Estimated consumer benefits ..................................................................... 8 2 2.1 2.2 2.3 Enabling long-term economic growth............................................ 9 Connectivity and the cost of air transport services .................................... 9 How aviation...
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...people: demand will be so inelastic that drivers will not alter their behavior. The second is that only people likely to be affected are low income drivers who have no choice but to travel by car.” Carefully evaluate this statement. The criticism is that this charge will be made redundant as this charge will fail to reduce congestion by a significant amount and people will rather pay the charge than find an alternative form of transport. This lack of behavioral change indicates the charge doesn’t do what it’s set out to do, and the only real benefit is the revenue gained for TFL. Using the graph we can see demand is very inelastic and even an increase in price of the charge, from p1 to p2, will only reduce quantity from q1 to q2. This small reduce in quantity is the reason why this is a criticism as congestion will reduce by a relatively small percentage The criticism is that this charge will be made redundant as this charge will fail to reduce congestion by a significant amount and people will rather pay the charge than find an alternative form of transport. This lack of behavioral change indicates the charge doesn’t do what it’s set out to do, and the only real benefit is the revenue gained for TFL. Using the graph we can see demand is very inelastic and even an increase in price of the charge, from p1 to p2, will only reduce quantity from q1 to q2. This small reduce in quantity is the reason why this is a criticism as congestion will reduce by a relatively small percentage ...
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...Stateline Shipping and Transport Company Strayer University MAT540 – Quantitative Methods September 1, 2011 Stateline Shipping and Transport Company In Excel, or Other Suitable Program, Develop a Model for Shipping the Waste Directly from the 6 Plants to the 3 Waste Disposal Sites The Stateline Shipping and Transport Company wanted to transport chemical wastes from the six plants to the three waste disposal sites. The six pants and their capacity for wastes generated are shown below. Also shown are the three waste disposal sites and their demand requirements. |Plants |Supply (barrels) | |1. Kingsport |35 | |2. Danville |26 | |3. Macon |42 | |4. Selma |53 | |5. Columbus |29 | |6. Allentown |38 | |Waste Disposal Sites |Demand (barrels) | |A. Whitewater |65 | |B. Los Canos |80 | |C. Duras |105 | Shown below are the shipping costs ($/bbl) from each waste disposal site to each plants. |Plants |Waste Disposal Sites | | |A. Whitewater...
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...universities. The goal of founder and CEO, of Perfect Chalk, Jean Bosco Mugabe is to be able to provide affordable, high quality and locally made chalk to school in the greater Rwanda region. Jeans’ vision is to expand his business to the outer limits of Rwanda, and possibly into other parts of Africa. However, The Perfect Chalk Factory is currently suffering from limited growth opportunities due to the inability to efficiently transport products outside of a certain radius of operation. The reason for this limitation is the quality of vehicles available to the company, high transportation costs and the condition of the roads outside of the city. The question that is being presented is whether there are better forms of product transportation available to the Perfect Chalk Factory, or are they forced to limit the reach of their business to their current area of operation. Lowering the Cost of Transportation of Eastern Africa Teravaninthorn, and Raballand (2008) did a review of the main international corridors of Africa where they measured the costs, and the problems associated with the trucking industries of each region. The study was carried out in three phases. Phase one consisted of distributing a trucking survey, in which the researchers were hoping to understand the basic operations of trucking services. Phase two...
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...warehousing inventory, transport and delivery. The range of activities involved are: 1) Freight forwarding 2) Customs brokerage 3) Freight auditing and payment 4) Vehicle control and communication 5) Product identification and tracking 6) Information system (optimization in management) 7) Transportation services / brokerage 8) Transportation equipment / leasing 9) Private fleet assets / management 10) Warehousing 11) Order management and fulfillment 12) Cross docking 13) Value added, assembly and configuration 14) Site location Transport principles in logistic The larger the capacity transportation vehicles are less costly per unit of freight than smaller capacity vehicle in economy of scale. In the economy of distance the decrease of transportations coast per unit of weight as distance increase. However, to maximize the size of load and the distance being shipped while still meeting the customer expectation. Land logistic Land logistics is a very important link in logistics activities. It extends the delivery services for air and maritime transport from airports and seaports. The most positive characteristic of land logistics is the high accessibility level in land areas. The main transport modes of land logistics are railway transport, road freight transport and pipeline transport. However there are same advantages and disadvantages of these transports mode. For example: Railway transport has advantages...
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...Impact of unstable Economic on Transportation Like many economic activities that are intensive in infrastructures, the transport sector is an important component of the economy impacting on development and the welfare of populations. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multipliers effects such as better accessibility to markets, employment and additional investments. When transport systems are deficient in terms of capacity or reliability, and the unstable economy hey can have an economic cost such as reduced or missed opportunities. Transport also carries an important social and environmental load, which cannot be neglected. Thus, from a general standpoint the unstable economic impacts on transportation can be direct and indirect: • Direct impacts related to accessibility change where the unstable economy is disabling larger markets to save time and costs. • Indirect impacts related to the economic multiplier effects where the price of commodities, goods or services drop and/or their variety increases. Mobility is one of the most fundamental and important characteristics of economic activity as it satisfies the basic need of going from one location to the other, a need shared by passengers, freight and information. All economies and regions do not share the same level of mobility as most are in a different stage in their mobility transition. Economies that possess greater mobility are often...
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...People make choices every day – decisions as big as choosing a career or a marriage mate and as small as selecting what to wear or what to eat. Even seemingly small decisions, however, can have far-reaching effects. In today’s virtually borderless society, the food we choose to eat affects not only ourselves but also our communities, our ecosystems and even the global economy. Therefore, we need to think globally and act locally. We need to widen our horizons and think about how what we choose to consume affects the environment and the people around us in both the short-term and the long-term. First, the global market itself has pros and cons. A global market ideally creates opportunities for more people to provide goods and services more cheaply, which in turn makes more jobs available. Additionally, it allows consumers complete access to many products that would otherwise be difficult, if not impossible, to acquire. However, in order to do any good in the long term, the system must be sustainable (Collins, 2010). That said, today, the global market is realistically not so. Decentralization, which functions by having smaller groups of people specialize in a certain niche product that is then dispersed globally, is socially unjust, creating pockets of wealth while a large majority of people work hard for less money in their local currency (Norber & Gorelick, 2013, para 5). The high demand for one specific area’s natural resources results in frequent over-farming, which...
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...or consumption imposes costs on third parties. In transport negative externalities can damage the result in an increased amount of carbon dioxide and other pollutants, which damage the environment, create noise pollution, and add to congestion. These create costs. Congestion on the roads costs fuel and time. It also results as a side effect in more pollution. The estimate annual external cost of road congestion in the UK is £18 billion. To prevent road congestion, road are always being improved and new roads are always being built. This however costs the government and therefore the tax payer even more money and therefore an increasing amount of people and therefore cars on the roads have a massive effect on the economy and the population as a whole. More roads being built will also create visual and noise pollution and in the short term could increase the road congestion during the time that the roads are being built due to lower speed limits and also the road works. Negative Externalities caused by transport * Accidents can cause congestion and when roads are congested, cars produce more CO2 as they are waiting in queue with their engines still running. Congestion also costs time and productivity as commuters and other people on business could be late and effect many other people. Also congestion would harm the haulage industry as it may make their deliveries late. * Air pollution is mainly in the form of CO2 emissions and all modes of transport contribute to air pollution;...
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...TIPS TO COPE WITH RISING FUEL PRICES 1. USE PUBLIC TRANSPORTS There are lot of public transports services such as trains, taxis, buses and all. To save a lot wherever you want to go, it is best to use one of the public transport as a platform to save money, you only pay for the service rather than you use your own private car which costs you higher. 2. GAS INSTEAD OF PETROL Have you ever though that there are another solution for not using petrol for our cars? There is one solution which we called this as a NGV GAS. It looks like a tank and put it in our car boot. It is much cheaper than petrol. But the only main problem is, there are certain places that could afford this NGV gas and could supply whenever you need it. Example, Petronas Sungai Besi and Petronas Cheras 3. WALK DON’T USE CAR / MOTORCYCLE Teach yourself to walk if you want to buy some groceries, little items by the shop which is near you. It is not necessary to use your car as the shop is not too far away and it is near you. You could save your petrol a lot and you could burn your calories which help you become much healthier. 4. SPEND WISELY Avoid being such a big spender. Learn to spend on useful things which meet your needs not what you desire. Make a list of things to buy. Less spending, less money. So you could save your money and spend on your petrol...
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...good control of the flows of the full and empty containers. The outstanding containers are a problem for the agency CMA CGM Morocco, engendering additional costs owed in accumulate demurrages and storage expenses. For a better control of flows, I found suitable to use the process approach to describe clearly the various processes import and export for the full and empty containers, so the various procedures organized to assure the continuity of the circuit of containers. Toward the end a dashboard is realized by means of the various indicators, aiming at the availability and at the smugness of containers at the level of deposit to satisfy the customers so to increase the sales force of CMA CGM Morocco as well as the recommendations implementation to decrea1se the number of the outstanding containers for the CMA CGM. Table of contents: Introduction Part 1: The management of the logistic flows of containers to the CMA CGM Chapter 1: The Company Section 1: CMA CGM, 3rd world ship owner 1) The birth of the group CMA CGM 2) History of the CMA CGM 3) The development 4) Setting-up in Morocco 5) Mission of the CMA CGM Section 2: A presentation of the actors of the port of Casablanca: 1) SOMAPORT, agency of exploitation of ports 2) The public actors of the sector of sea transport in Morocco Chapter 2: The ideal progress of a container Section 1: The technical aspects of the transportation of goods containerized 1) Definition of a...
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...Jack Dilendik October 3rd 2014 Interpretation Each method suggested would provide benefits accompanied by specific costs. These benefits and costs are outlined below. Contracting through Centro Syracuse University currently has a contract with Centro Bus that is worth around $620,000 per year. An additional route could potentially cost roughly $100,000 ($600,000/6) more. This price would undoubtedly rise to compensate more direct routes to Destiny USA. The extra bus would provide students every accommodation Centro offers through its other current routes. In exchange for a higher price, Centro is liable for their drivers and insurance expenses. In addition Centro handles any maintenance and fuel expense. Centro bus has the advantage of easily seating over 45 students. Even at full capacity there is room to stand as well as efficiently carry on anything bought at Destiny Mall. Centro can also accommodate all handicapped students. Centro would run on a consistent predetermined schedule. Realignment of Current Transports Shuttle service is already provided by the University and will not be difficult or costly to realign services. The University is currently responsible for the operation of a fleet of over 230 owned and leased motor vehicles distributed among 30 departments (consisting of approximately 500 drivers), as well as additional motor vehicles which may be leased as needed. The University is liable for its drivers, insurance expenses, maintenance, and fuel expenses...
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...commodity or service such as transportation or food, than the structure, function and meaning of the consumption patterns that characterize the different lifestyles that coexist in our affluent, liberal, democratic and capitalist societies. While the concept of “consumption pattern” is omnipresent in sustainable development literature since its appearance in Agenda 21, it is generally left undefined as if it is not necessary to be more explicit about it. Here we will define a consumption pattern as that aspect of a lifestyle that relates to the Food, transport, Housing and utility, Medical, entertainment and savings. This report presents the income of the people and their expenditures. In this report, we have collected information about the income of ten peoples (five high income and five low income people) and their expenditures that how they consume their income. Expenditures in different categories are as follows: * Food * Transport * Housing and Utilities * Medical * Entertainment * Savings...
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...Global Logistics – INTL222-001 Emery Assignment Alternative 18 November 2015 I am about to ship precision instruments on 1 pallet. The cost of the goods is $2, 000, 000, 00. The interest rate is 6%. The trip takes 1 day by air and the air freight carrier will charge $4,500.00. The trip takes 21 days by marine vessel and will cost $300. The cost of lost interest over the length of the transit time (opportunity cost) needs to be factored into the total cost of transportation for each mode. Hint: first calculate the cost of lost interest per day. 1. What is the difference in “Total Cost” between the 2 methods excluding duty and tax which would be the same in either case? (Show your work). (2,000,000.00 x 0.06)365 = 328.77$ Interest per day 2,000,000.00 + 328.77 + 4,500.00 = 2,004,828.77$ Total Cost by Air 2,000,000.00 + 328.77 (21) + 300.00 = 2,007,204.17$ Total Cost by Marine Vessel 2,004,828.77 - 2,007,204.17 = 2,377.40$ Difference in cost between Air & Marine 2. How many days do the goods have to travel by marine vessel before the cost of the 2 modes of transport is roughly equal? 2,007,204.17 / 21 = 95,581.15$ 2,004,828.77 / 95,581.15 = 20.97 Days 3. Which transport method do you recommend? I suggest transporting the item via air, because it will take less time which is 1 day versus 21 days and cheaper for 2,377.40$ in compare to shipping it via marine vessel. Prepare a brief report to submit by the end of class formatted with an introduction...
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