SCM1005 – Transportation and Logistics Assignment 1 – Supplier Selection Value (%) This assignment is worth 15% of your course grade. Course Learning Outcomes (CLOs) By completing this assessment, you will be able to: ● CLO 2: Determine the information and documentation as well as appropriate tools required to facilitate the flow of material, goods and/or services within a supply chain ● CLO 3: Identify and assess the relevant costs involved in transportation decision-making ● CLO 7: Apply a working knowledge of the documentation required for international transportation, customs and import/export processes, and current international commercial terms (INCOTERMS) to facilitate the international movement/distribution of goods Task Read the case in Appendix A and answer the questions included. Student must provide a spreadsheet showing their work for questions 1,2 and 3. How to Complete This Assessment 1. Assignment shall be completed individually. 2. The use of generative AI programs like ChatGPT, or paraphrasing websites like Spinbot are not permitted. You can succeed (and you will learn more) without relying on these tools. 3. I encourage you to use the course textbook and materials to inform your work. No external research is required to complete this assignment. Grading Criteria Proficient (2 points) Emerging (1 point) Incorrect, not included, or needs development (0 points) Grade Question 1 The answer is correct; a spreadsheet is provided to show work. Minor mistakes in the calculation or no spreadsheet is provided to show work. The question is not answered; Major mistakes in the calculation Question 2 The answer is correct; a spreadsheet is provided to show work. Minor mistakes in the calculation or no spreadsheet is provided to show work. The question is not answered; Major mistakes in the calculation Question 3 The answer is correct; a spreadsheet is provided to show work. Minor mistakes in the calculation or no spreadsheet is provided to show work. The question is not answered; Major mistakes in the calculation Question 4 The response is welldeveloped, answers the question directly, and provides evidence of critical thought and application of course materials. The questions is partially answered; the answer is brief, or the answer requires more development The answer is extremely brief, does not answer the question, or is skipped entirely. Question 5 The response is welldeveloped, answers the question directly, and provides evidence of critical thought and application of course materials. The questions is partially answered; the answer is brief, or the answer requires more development The answer is extremely brief, does not answer the question, or is skipped entirely. Completed selfassessment. Max. 1 point Self-assessment completed in a thoughtful way (1 point) Self-assessment is partially completed, or answers require more development (0.5 points) Self-assessment not completed (0 points) Total Points /11 Total % % How to Submit Your Assessment 1. Complete the Assignment 1 Self-Assessment 2. Submit your answers to questions 1-5 in the dropbox in Moodle. Include a spreadsheet to show calculations for questions 1, 2, and 3. Questions 4 and 5 can be included in the same file or a separate document. Due Dates: January 24, 2024 at 11:59pm. If you are short on time (for whatever reason), request an extension rather than commit academic dishonesty (examples of academic dishonesty include: asking a friend to share their work, using ChatGPT, or spinbots, copying from the internet, etc.). You may request an extension via email prior to the original due date. Requests received after grading has been completed will not be considered. Keep your request simple: include which assignment and the requested new due date. You do not need to reveal the details of your private life in order to be granted an extension. All reasonable requests within the course term shall be granted (the last possible submission date for all assignments is Feb 21, 2024). Appendix A: The Widget Company (TWC) is a retailer of widgets located in Sudbury, Ontario. The yearly demand for widgets is 48,000 units. TWC has a contract with a third-party logistics company, which includes the rates in Table 1 below. TWC only pays these if the costs are not included in the supplier’s quoted price. INCOTERMS provided in the suppliers’ proposals (Table 2) will determine what is included in their price. If insurance is not included in the suppliers’ price (as per Table 2), TWC will pay the Third-Party logistics company for insuring the goods (as per rates in Table 1). All widgets are containerized for shipment. Up to 4,000 widgets can be loaded into a 20ft container, and up to 8,000 widgets can be loaded into a 40ft container. TWC has received proposals from 3 suppliers to supply widgets. You are tasked with making the supplier selections and order quantity decisions for the rest of the year. Table 2 contains a summary of the 3 proposals. Table 1 – Third-Party Logistics Company Rates 20ft container price 40ft container price Export Packaging $500 per container $1,000 per container Loading Charges (at Origin) $200 per container $300 per container Delivery to Port (at Origin) $400 per container $600 per container Export Duties, Taxes & Customs Clearance From Mexico: none From China or Nigeria: 5.5% of the value of the merchandise From Mexico: none From China or Nigeria: 5.5% of the value of the merchandise Origin Terminal Handling Charges $100 per container $150 per container Loading on Carriage $100 per container $150 per container Freight Charges (Port to Port Delivery) From Mexico: $3,400 per container From China: $7,000 per container From Nigeria: $5,000 per container From Mexico: $4,600 per container From China: $13,000 per container From Nigeria: $10,000 per container Insurance 1% of the value of the merchandise 1% of the value of the merchandise Destination Terminal Handling Charges $250 per container $350 per container Delivery to Destination (from Port) $800 per container $1,200 per container Unloading at Destination $150 per container $200 per container Import Duty, Taxes, and Customs Clearance From Mexico: none From China or Nigeria: 7% of the value of the merchandise From Mexico: none From China or Nigeria: 7% of the value of the merchandise Table 2 – Supplier Proposals Supplier 1: Supplier 2: Supplier 3: Price per unit: $23.05 $21.55 $24.05 INCOTERM: EXW FCA CPT Minimum Order Quantity: 15,000 12,000 2,000 Supplier Location: Guanajuato, Mexico Qingdao, China Lagos, Nigeria Lead time (days): 12 35 24 Widgets are insured in transit by the supplier: No Yes Yes All amounts are in Canadian Dollars. Questions 1. What is the landed price per widget for Supplier 1 if ordering the minimum order quantity? Provide your answer in a spreadsheet showing your calculations. Remember to use the most economical container size if you are using the Third-Party Logistics company rates. 2. What is the landed price per widget for Supplier 2 if ordering the minimum order quantity? Provide your answer in a spreadsheet showing your calculations. Remember to use the most economical container size if you are using the Third-Party Logistics company rates. 3. What is the landed price per widget for Supplier 3 if ordering the minimum order quantity? Provide your answer in a spreadsheet showing your calculations. Remember to use the most economical container size if you are using the Third-Party Logistics company rates. 4. Which supplier proposal carries the least amount of risk for TWC? Why? 5. Which supplier would you recommend and why? List any other issues and transportation costs that may influence the decision.