Essay About Stop-Off Charge And Case N.A.M.From Prague

Transportation and Logistics
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1. Transit privilegesStop offWhen the vehicle is loaded with cargo destined for more than one stop, a stop-off charge may be added to the bill. The per-mile rate is determined by the location of the last point on the routeEXAMPLE- Shipment of 18000 lb. is originated at point I. Additional 36000 lb. is to be combined with it at point J and both shipments are to move to point K for delivery. Stop off privilege: $25[pic 1]WITHOUT stop-off 18000 * .5 / 100 = 9054000 * 1 / 100 = 540TOTAL 630WITH stop-off54000*1.1 / 100 = 594Stop-off privilege = 25TOTAL 619Two types of stop offs for partial unloadingAll unloading is made from the equipment in which the shipment was originally loadedTransfer at a trans loading point is made to different equipment before moving on to final destinationEXAMPLE- Suppose 3 shipments of J=8,000lb. K=12,000lb. and L=10,000lb. originating at I are to be delivered in the following way. Stop off privilege: $15/stopWITHOUT stop-off8,000 * 3.05 / 100 = 24412,000 * 3.35 / 100 = 40210,000 * 3.60 / 100 = 360TOTAL = 1006WITH stop-off30,000*3 / 100 = 900Stop off 15 x 2 = 30TOTAL 930AdvantagesSavings on transportation costsSavings on inventory holding costsCycle inventoryThe average amount of inventory you have between two prediction batchesEXAMPLE- A company has 2 warehouses, one in Chicago and one in Cleveland. The Boston DC supplies both. Each warehouse receives a truckload shipment every 40 days, though replenishment quantities and truckload costs differ.Cleveland: 15000 pounds at $1080Chicago: 25000 pounds at $1800Alternative A is to ship 40,000 pounds to Chicago every 40 days with a stop off in Cleveland to unload 15000 pounds, in which case the transportation cost is $1800 plus a stop-off fee of $144. What is the impact on transportation costs?Alternative B how many items should we ship and with which frequency in order to reduce inventory holding its costs by 32.5%?Current situation1080 + 1800 / 40 days= $72Option A (with stop-off)1800 + 144 fee / 40 days = $48.6/day1 – 48.6/72 = 0.325 reductionOption B1 – x/20000 = 0.325 (20 because with cycle inventory you do the average between two batches 40/20)x = 13500 * 2 (two weeks) = 27000EXAMPLE- A power company is Missouri can buy coal for its generating plants from western mines in Utah or from mines in Pennsylvania. The maximum purchase price for coal of $20 per ton at the Missouri plant is set according to the price of competing energy forms. The cost of mine coal in the west is $17 per ton and in the east $15 per ton. Transportation cost from eastern mines is $3 per ton. What is the value of transportation from western mines?Current situation15 + 3 = 1817 + x = 18x = 12. Export ActivitiesTerms of tradeDefine where responsibilities transfer from exporter to importerIncoterms13 different incoterms divided into 4 primary groupsE- term: Importer takes full responsibilityF-term: exporter has responsibility for getting shipment from origin to port of embarkation C-term: Exporter obtains and pays for main transport leg and/or cargo insuranceD-term: Exporter responsible for delivery of shipment to foreign destinationCargo InsuranceInternational shipments exposed to larger financial risks and transport perilsTerms of paymentFreight documentation3. Case N.A.M.From Prague you can ship to: DEADLINE: Nov 15Prague → Hamburg 18 daysRail 3Waterways 6Oct 24Oct 27Oct 31Nov 3Prague → Rotterdam 17 daysRail 4-5Oct 23Oct 28Nov 2Best alternative? Prague → Hamburg (rail 3 days)+ 18 days → Santos Additional information?2 buses: $1643 * 13 flatcars = $21,359$45 * 25 buses = $112520 buses *$25 + 5 xtrabuses*$(25+15) = $700Hamburg → Santos = $6000Handling – $94 * 25 buses = $2350TOTAL = $31,534TOTAL per bus = $1,261.36