Vibrant Video
Vibrant Video (V) is a manufacturer of home theater projection systems. The company assembles Ultra 11D projectors in Portland, Oregon and sells them online and through specialty electronics stores. The most popular model retails (or $4,995 and W bundles the projector with high fidelity audio components that are purchased from external suppliers. Due to ongoing delivery challenges with their Pacific Rim suppliers and carriers, V’ has decided to buy from suppliers in closer proximity to Portland. The speakers will be supplied by an electronics company with operations in Tijuana, Mexico and the receivers will be purchased from an audio lab in Manchester, New Ilampshirc. The purchase contracts have been negotiated in principle. The speaker supplier has given W two shipping choices under FOB Destination, Freight Collect.1 he receiver supplier only sells its products FOB Origin, Freight Collect. The remaining issue (or the V; transporta-tion director is to evaluate the delivery options that her analyst recommended for each product and make a decision. Relevant information is provided in the following table:
SPEAKERS RECOVER
Manufactured in Iguana, Meow Mancnester, New HaTpsnrre V’ purchase price $175 per set $225 per un t Weight 28 pounds 5 ponds Dimensions 30′ CU x 18″ 18″ 18″ CU xfr (W) dB Characteristics Sturdy, bu ky. not eas ry daTaged Centred. vibration sense ve.
Dolt ran
Freight Tents FOB Destnation, Fregnt Co *et FOB Oren. Fre gm Cot ect and Nosed
Osten I Weedy LT L del very Weekly Ground de very 200 un is 200 ernes $2.485 Cost per oet Nay $2.169 Cost pa detvay
answer the below 6 questions that are related to the uploaded case study.
1. What responsibilities, control, and costs does V2 bear under each of the FOB terms offered?
2. What is the delivery cost and landed cost per unit for each speaker delivery option?
3. Which delivery option do you recommend for the speakers?
4. What is the delivery cost and landed cost per unit for each speaker delivery option?
5. Which delivery option do you recommend for the speakers?
6. What other supply chain issues and costs must SSE take into consideration when making these transportation decisions?
