International logistics problems | Operations Management homework help

 Below are the questions for the Bollore case.  There are 3 “situations” presented in the case.  These 4 questions need to be answered for EACH situation.

1. Decide which two groups of Incoterms you should compare

2. Choose the most suitable group of Incoterms from the supplier and buyer’s standpoints

3. Choose a specific Incoterm from this group, the most appropriate for the situation presented

4. Calculate the estimate to offer the client

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I apologize but I did not realize the case didn’t include a list of Incoterms for you to answer my questions with.  Please see the attached 3 pages. 

The first page is a table of Incoterms.  They are sorted in groups…..Ex Works (EXW) is the ‘E Group’.  FCA, FAS and FOB would comprise the ‘F Group’ and so on.  

I will walk through what I am looking for in answers by starting off the first scenario for you.

1. Decide which 2 groups of Incoterms to compare.

Seller is Atlas Mining and buyer is Amiko Mine.  The case states the following, “And while the sales terms and Incoterms are decided independently of one another, in this transaction the mine would be responsible for the merchandise as soon as it was ready for shipping.”

From the seller’s point of view, this indicates that it wants the buyer to take the responsibility for transporting the merchandise from the seller’s factory, as specified in Incoterm EXW.

As a rule, the seller is reluctant to handle the shipment of merchandise for occasional customers, because of a negative experience in the past that resulted in a significant loss. The case states the following, “As a result, it would be difficult for the buyer, from its office in New Caledonia, to coordinate the shipment while it was still in Canada.”

From the buyer’s point of view, this indicates that it wants the seller to handle the shipment of the merchandise as far as the port of loading, which would correspond to the Incoterms from Group F.

So you would be comparing Incoterms EXW and Group F

The next question asks you to determine if you will go with EXW or Group F.  Make a decision and provide 2-3 bullet point why you made you selection.

The 3rd question then asks you to select the specific Incoterm within the group you selected in question 2.  Make a selection and then again provide 2-3 bullet points why you made your selection.

The final question asks you to calculate the total costs to quote….use the “Logistics Costs’ table from page 7 of the case to try and do this.