Hdt Truck Company Case
Autor: delight207 • October 16, 2013 • Case Study • 449 Words (2 Pages) • 5,257 Views
I would recommended going with the Nola Pino Charter because when you add the totals up it is a lot cheaper to load all your trucks and unload them in Doha versus the Baltimore Charter. Nola Pino charter is also closer to crown point Indiana while Baltimore is further away. The shipping time it takes to ship from Baltimore to Doha is average 22 days with 1 shipment. You simply have many more advantages going with Nola Pino all because of the price.
HTD would receive $172,000 per truck in U.S funds FAS (free alongside ship) at the discharging vessel in Doha. It means HTD was responsible for all transportation costs up until the time and point the trucks were discharged from the ship’s tackle at Doha. If the buyer wants to change the selling term to FOB (free on board), which means that the buyer pays for the transportation of goods, HTD can give a discount of $ 2109.40 per truck. This is the expense of transportation to the destination to Doha when HTD has the FAS selling term. In case the buyer wants to change the terms of sale to delivery at port in Baltimore and unload the trucks from the railcars, HTD can offer a discount of $ 1790 per truck, which is the total expense that is composed of the handling fee at Baltimore, the ocean freight rate, and the insurance fee.
One way that HDT will change from one routing to the other is if there are any additional charges or interest rates that were not presented with all the other costs that HDT was given. For example if Nola Pino Charter was to add on an additional insurance charge that was not originally given.
Let’s say the material fee for one truck is $3,000. In order to produce 50 trucks, the raw material cost will be $ 150,000. The interest on this amount will be $18,000 per year. The producing time for 50 trucks is only 18 days. If the HTD pays overtime fee to produce faster it will not make a big difference. Also, they HTD are aware of that the quality declines whenever the pace became
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