Woofers and Tweeters

Chapter 10 Homework

Case Study 10-1

1. What is the delivery cost per unit of woofers and tweeters for each option?

The cost of delivery 1 unit as per woofers1 option is $2.08 (cost to deliver 400 unites=$832 so 1 unit delivery cost is $832/400=$2.08)

The cost of delivery 1 unites as per woofers2 option is $2.33 (cost to deliver 400 unites=$932 so 1 unit delivery cost is $932/400=$2.33)

The cost to deliver 1 unit as per tweeters option1 is $0.86 (cost to deliver 800 unites=$689 so I unit delivery cost is $689/800=$0.86)

The cost to deliver 1 unit as per tweeters option2 is $0.83 (cost to deliver 800 unites=$669 so I unit delivery cost is $669/800=$0.83)

2. Why do the delivery costs of woofers and tweeters vary among the four options?

The delivery cost of product woofers and tweeters varies because of the follwing differences among the mode of trasport, FOB terms, service availabilty and transit time.

3. Which option do you recommend for the delivery of woofers and tweeters? Why?

Woofer’s product: weighs 48pounds/ company requires 400unites. Thus, the total weight is 48*400= 19,200pounds. Athens TL can transport 19,200 pounds per shipment. Athens LTL can carry up to 15,000pounds per shipment. If the company select woofers1 option, it take 14days to receive the 19,200pounds. However, if they selects woofers2 option, they can get the 19,200pounds in 24hours. The product is bulky and study so they need large carriers to trasfer the product. Also if they choose FOB origin, the loss during transportaion can’t be recovered. Therefore, the company have to select woofers2 option.

Tweeter’s product: The products are compact, vibration and moisture sensitive. So they have to choose Tweetwer2 option. Vibrration during transportation is more high in LTL than airfreight and it’s going to take 2days to receive the product.

It would be better to select woofers2 and tweeters2 because the company would have the raw materials in