WINDSOR WOOD FURNITURE LTD © James K. Higginson 2016 Since its creation in Winds

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WINDSOR WOOD FURNITURE LTD © James K. Higginson 2016 Since its creation in Windsor in 1964, Windsor Wood Furniture Ltd. had developed a world-wide reputation for high quality, innovative wood furniture. All of the company's products were made in a single factory in Windsor, using only Canadian-grown wood and Canadian-made fittings The finished products were sold to buyers around the world. In mid-June, the company received a large order from a buyer in Asia. The buyer requested that the products be delivered as early as possible, so the company's production planners reviewed current production schedules closely. Most of the order could be filled from on-hand inventory, with manufacturing of the other pieces to be completed on Thursday July 7. The entire order would be completed and ready to leave the Windsor factory early on Friday July 8 The company's logistics group concluded that the shipment was a "typical" Asia-bound shipment and that the entire order would fit inside one 40-foot international ocean container. At the Windsor factory, the order would be packed, along with products destined for other buyers, into a 53-foot domestic container. The container would be moved by truck to the Canadian National Railway's (CN) intermodal yard in Brampton (near Toronto), where it would be loaded on board a train for transportation to the Port of Vancouver. Driving time from the Windsor factory to the Brampton rail intermodal yard was, on average, about 4 ½ hours and the trucking cost was $250 per container In Vancouver, the container would be moved to a transshipment centre, where the container uld be opened and the Asian-bound products transferred to a 40-foot international ocean container for transportation by ship to Singapore (products not destined for Asia would be re- packe d into other containers). A third-party logistics service provider handled all logistics activities in Vancouver; this included m oving the container to the transshipment centre t ocean containers, preparing and submitting Canadian repacking the goods into 40-foo Customs documents, and delivering the container to the ocean carrier. The cost to Windsor Wood Furniture was $650 per container plus any storage charges. The 40-foot international ocean container with the repacked goods would be ready departure for China, on average, on the fourth da r the goods arrived in Vancouver. However, if a ship was not ready at that time, the container would have to be stored until the ship was ready to load. Stor $50 for each container at the transshipment centre at midnight of each day, with the first three midnights" being free of charge. In the past, the company had used two ship lines for trans Company and Hapag-Lloyd-and ocean carriers porting Asia-bound containers from the Port of Vancouver- Mediterranean Shipping the company's logistics group saw no need to consider other Windsor Wood Furniture would be responsible for clearing the goods through Canadian Customs and paying soon as the ship docked at the Port of Singapore, the Asian buyer would assume all responsibility for the container, its content Asian Customs. As well, according to the sales agreement, the Asian buyer would be responsible for purchasing cargo insurance on the shipment. for all transportation and logistics activities to the Port of Singapore. As s, and remaining logistics activities, including clearing Recently, it had been suggested that containers could be trucked to CN's intermodal yard in Detroit, then moved by rail through Chicago to Vancouver. The proximity of Detroit to Windsor was estimated to reduce trucking time and cost from the Windsor factory to the Detroit rail intermodal yard to, on average, approximately 2 hours and $100 per container

Explanation / Answer

Cost

Ship Cost = $650 per container * 1.35 CAD=$877.50 CAD

Storage Cost = $50 * 1.35 CAD=$67.50 CAD: 3days storage cost is free, starting from the 4th day storage cost will be calculated each day cost is $67.50 CAD

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Total Cost= $945 CAD

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According to the above article one time only container shipped from Vancouver to singapore, then Vancouver container started to departure from 4th day because upto three days taken for repacked the products that only send to asian bounds

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5 a) Hapag Lloyd is a ship line they have used,   departure date is Monday July 11th

According to the above article Vancouver container started to departure from 4th day when the goods arrived to port because upto three days taken for repacked the products into the contianer that only send to asian bounds.

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c) Estimate for total time:

Factory Departure time =July 8th

After that factory load container assigned to Brampton rail

Brampton rail to Vancouver= 4and 1/2 hours

container stayed in Vancouver port = Up to 3 days

Vancouver Depature =4th day it means 11th of july

Singapore arrived = 24 days it means August 4th

Totally = 24 days + 3 days repacked)= 27 days

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5 b) Estimated total Cost

RAil cost= $337.50($250 *$1.35=$337.50)

Ship Cost = $877.50 CAD($650 per container * 1.35 CAD)

Storage Cost =$67.50 CAD ( $50 * 1.35 CAD=$67.50 CAD )

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total cost= $1282.50CAD

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6b)Brampton rail cost is $$337.50 - $135 (detroit) =$202.50 CAD get decreased

RAil cost= $135($100 *$1.35=$337.50)

Ship Cost = $877.50 CAD($650 per container * 1.35 CAD)

Storage Cost =$67.50 CAD ( $50 * 1.35 CAD=$67.50 CAD )

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Total Cost= $1080CAD

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6c) only 2 1/2 hours will be reduce because Brampton rail had taken 4 1/2 hours - 2 hours for detroit=2 1/2 hours can save rest of other transportation remain same. 24 days + 3 days repacked= 27 days

SHIP LINE Depart from Vancouver Arrive in Singapore Number of Days Hapag Lloyd Monday July 11th Saturday, August 4 th 24 days

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