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Crunching numbers. work with only the figures in yellow line
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Crunching More Numbers Assignment – Rossi Boots – Shipping and Lost Sales
ORIGINAL SHIP DATE
SHIPPING DELAY (DAYS)
COST PER PAIR EXW AUD
AUD per CAD Exchange Rate
300364191
300376903
300379741
3-Apr-24
2-Apr-24
30-Mar-24
18
14
14
$
87.00 $
79.00 $
79.00
$
1.11 $
1.12 $
1.11
SEA SHIPPING DAYS
AIR SHIPPING DAYS
SEA SHIPPING COST PER PAIR USD
AIR SHIPPING COST PER PAIR USD
USD per CAD Exchange Rate
$
$
$
ORIGINAL EXPECTED ARRIVAL DATE
LOGISTICS DAYS IN CANADA
FLYER START DATE
31
5
28
4
32
3
0.470 $
5.019 $
0.783 $
0.447 $
5.224 $
0.798 $
0.484
5.173
0.722
1-May-24
4
6-May-24
1-May-24
3
5-May-24
29-Apr-24
5
6-May-24
Boot Sales per Day before and after flyer (Pairs)
BOOT SALES PER DAY AFTER FLYER (PAIRS)
29
195
21
208
35
208
Canada Customs Duty
9.5%
9.1%
8.7%
179.00 $
179.00 $
MSRP
$
179.00
300370006
300351448
300382709
300381976
300374859
300386363
31-Mar-24
29-Mar-24
31-Mar-24
28-Mar-24
3-Apr-24
31-Mar-24
15
17
14
17
17
16
$
81.00 $
87.00 $
89.00 $
83.00 $
88.00 $
84.00
$
1.11 $
1.10 $
1.10 $
1.11 $
1.11 $
1.11
$
$
$
$
23
3
31
5
25
3
26
4
32
3
31
5
0.489 $
4.968 $
0.752 $
0.466 $
5.275 $
0.775 $
0.447 $
5.019 $
0.775 $
0.466 $
5.378 $
0.737 $
0.447 $
5.326 $
0.745 $
0.484
5.224
0.745
27-Apr-24
4
6-May-24
1-May-24
5
6-May-24
27-Apr-24
3
5-May-24
29-Apr-24
4
6-May-24
30-Apr-24
3
5-May-24
29-Apr-24
3
3-May-24
22
195
35
209
17
199
33
209
28
193
15
203
8.9%
9.2%
8.6%
9.0%
8.7%
9.4%
179.00 $
179.00 $
179.00 $
179.00 $
179.00 $
179.00
300373366
300382825
29-Mar-24
4-Apr-24
16
17
$
79.00 $
82.00
$
1.10 $
1.12
$
$
$
$
23
4
24
3
0.447 $
4.968 $
0.737 $
0.470
4.866
0.745
BUSN 3410 002 – Global Supply Chain Management
300358047
300358614
300364315
5-Apr-24
3-Apr-24
5-Apr-24
14
17
16
$
80.00 $
88.00 $
85.00
$
1.11 $
1.11 $
1.10
$
$
$
23
5
27
3
29
3
0.456 $
5.070 $
0.752 $
0.466 $
5.122 $
0.775 $
0.480
5.122
0.798
27-Apr-24
3
6-May-24
28-Apr-24
5
6-May-24
1-May-24
4
5-May-24
30-Apr-24
3
5-May-24
1-May-24
5
5-May-24
25
208
26
195
34
210
31
205
18
204
8.5%
9.4%
8.9%
9.4%
9.4%
179.00 $
179.00 $
179.00 $
179.00
$
179.00
ain Management
300361862
300364713
300360021
300372214
300377289
300357627
29-Mar-24
31-Mar-24
30-Mar-24
30-Mar-24
2-Apr-24
3-Apr-24
15
17
16
14
16
16
$
86.00 $
82.00 $
85.00 $
81.00 $
85.00 $
85.00
$
1.10 $
1.10 $
1.10 $
1.11 $
1.11 $
1.12
$
$
$
$
30
4
28
5
29
4
29
4
31
3
26
4
0.456 $
4.968 $
0.760 $
0.442 $
4.917 $
0.760 $
0.456 $
4.968 $
0.768 $
0.452 $
5.173 $
0.752 $
0.470 $
4.866 $
0.798 $
0.447
5.224
0.745
30-Apr-24
4
6-May-24
27-Apr-24
3
3-May-24
27-Apr-24
5
5-May-24
28-Apr-24
3
6-May-24
29-Apr-24
4
4-May-24
27-Apr-24
4
3-May-24
20
196
23
191
19
196
32
200
34
202
22
205
8.6%
9.0%
8.7%
9.3%
8.5%
8.9%
179.00 $
179.00 $
179.00 $
179.00 $
179.00 $
179.00
300374942
300375193
300363997
300375597
300357836
300366543
1-Apr-24
27-Mar-24
27-Mar-24
29-Mar-24
27-Mar-24
1-Apr-24
18
16
15
17
17
18
$
82.00 $
86.00 $
82.00 $
85.00 $
79.00 $
89.00
$
1.11 $
1.11 $
1.11 $
1.10 $
1.10 $
1.11
$
$
$
$
30
3
26
3
30
3
33
5
29
4
31
4
0.461 $
5.275 $
0.745 $
0.442 $
5.326 $
0.798 $
0.470 $
5.326 $
0.737 $
0.489 $
5.173 $
0.798 $
0.466 $
5.173 $
0.783 $
0.461
5.173
0.775
28-Apr-24
4
6-May-24
30-Apr-24
5
3-May-24
1-May-24
4
7-May-24
1-May-24
3
5-May-24
1-May-24
3
3-May-24
28-Apr-24
3
7-May-24
21
195
21
192
35
200
15
209
34
207
21
200
9.2%
9.2%
8.8%
8.9%
8.7%
9.0%
179.00 $
179.00 $
179.00 $
179.00 $
179.00 $
179.00
300365631
300359003
300366249
300377279
300363649
300370004
5-Apr-24
31-Mar-24
1-Apr-24
31-Mar-24
3-Apr-24
3-Apr-24
18
18
15
15
18
14
$
79.00 $
81.00 $
81.00 $
85.00 $
81.00 $
83.00
$
1.10 $
1.10 $
1.12 $
1.12 $
1.11 $
1.11
$
$
$
$
24
5
33
3
30
4
25
5
28
3
27
3
0.480 $
4.866 $
0.737 $
0.452 $
5.173 $
0.745 $
0.480 $
5.224 $
0.783 $
0.475 $
5.275 $
0.722 $
0.466 $
5.019 $
0.722 $
0.475
4.968
0.745
29-Apr-24
3
3-May-24
27-Apr-24
3
3-May-24
28-Apr-24
4
4-May-24
27-Apr-24
4
4-May-24
27-Apr-24
3
6-May-24
1-May-24
4
7-May-24
15
195
22
204
23
200
27
206
34
195
16
205
9.5%
8.7%
9.3%
8.5%
8.7%
8.6%
179.00 $
179.00 $
179.00 $
179.00 $
179.00 $
179.00
300366980
300374774
300367061
300376648
300370211
300357578
4-Apr-24
30-Mar-24
4-Apr-24
27-Mar-24
2-Apr-24
3-Apr-24
15
15
18
17
14
15
$
80.00 $
83.00 $
79.00 $
84.00 $
85.00 $
79.00
$
1.12 $
1.10 $
1.10 $
1.11 $
1.12 $
1.11
$
$
$
$
23
3
26
3
28
4
32
5
23
3
26
4
0.461 $
5.378 $
0.722 $
0.489 $
5.275 $
0.790 $
0.466 $
4.866 $
0.798 $
0.489 $
5.019 $
0.783 $
0.447 $
5.224 $
0.775 $
0.484
5.275
0.760
28-Apr-24
5
7-May-24
30-Apr-24
5
3-May-24
28-Apr-24
5
5-May-24
27-Apr-24
4
6-May-24
1-May-24
4
7-May-24
1-May-24
4
6-May-24
22
192
32
200
31
194
31
203
31
200
24
191
9.1%
8.7%
9.4%
8.6%
8.8%
8.6%
179.00 $
179.00 $
179.00 $
179.00 $
179.00 $
179.00
300377852
300382451
300357584
300370272
300361356
300370009
29-Mar-24
30-Mar-24
6-Apr-24
2-Apr-24
2-Apr-24
28-Mar-24
17
17
15
17
16
15
$
84.00 $
88.00 $
83.00 $
80.00 $
83.00 $
87.00
$
1.12 $
1.10 $
1.10 $
1.12 $
1.12 $
1.12
$
$
$
$
25
3
30
5
25
3
26
5
33
5
23
4
0.452 $
5.378 $
0.768 $
0.442 $
5.173 $
0.768 $
0.489 $
5.122 $
0.745 $
0.452 $
5.173 $
0.790 $
0.447 $
5.275 $
0.730 $
0.456
5.070
0.783
1-May-24
4
5-May-24
29-Apr-24
4
6-May-24
30-Apr-24
3
7-May-24
29-Apr-24
3
3-May-24
28-Apr-24
5
3-May-24
27-Apr-24
3
4-May-24
19
205
29
192
33
203
31
192
31
200
29
204
8.8%
9.5%
8.6%
8.6%
9.4%
9.2%
179.00 $
179.00 $
179.00 $
179.00 $
179.00 $
179.00
300315088
300385173
300386192
2-Apr-24
3-Apr-24
2-Apr-24
16
18
17
$
88.00 $
88.00 $
89.00
$
1.11 $
1.10 $
1.11
$
$
$
$
27
5
28
5
24
5
0.484 $
4.968 $
0.760 $
0.475 $
5.224 $
0.790 $
0.452
4.968
0.790
27-Apr-24
3
6-May-24
1-May-24
4
7-May-24
1-May-24
5
3-May-24
35
209
18
208
29
206
9.1%
8.9%
8.9%
179.00 $
179.00 $
179.00
BUSN 3410 Global Supply Chain Management –
Individual Assignment-Crunching Numbers
Source: https://www.rossibootscanadaonline.com/pages/about-us
Due to a labour disagreement between the union representing tugboat crews, the Australian Institute
of Marine and Power Engineers (AIMPE), and Flinders Port Holdings, the operator of the container
port at Port Adelaide, South Australia, a shipment of 5,000 pairs of Rossi boots has been delayed for
SHIPPING DELAY (DAYS). The boots should have left on ORIGINAL SHIP DATE. (5,000
pairs of boots, in boxes, fit in a single standard 40’ shipping container.)
BUSN 3410 – Global Supply Chain Management – 2024 T1 Winter
Source: https://rossiboots.com.au/ and http://www.eveoncontainers.com/en-CA/used-40ft-shipping-container
BUSN 3410 Global Supply Chain Management –
Individual Assignment-Crunching Numbers
Shipping the boots from Port Adelaide, South Australia to Vancouver, British Columbia by sea will
take SEA SHIPPING DAYS. Shipping the boots by air from Adelaide International Airport (ADL)
to Vancouver International Airport (YVR) will take AIR SHIPPING DAYS. The problem is that
shipping by sea is much cheaper than shipping by air. Shipping by sea will cost SEA SHIPPING
COST PER PAIR USD while shipping by air will cost AIR SHIPPING COST PER PAIR USD.
And even after the shipment of boots arrives in Canada it will take LOGISTICS DAYS IN
CANADA to get the shipment of boots unpacked and sorted, delivered to the stores, and put out
on the sales floor.
But the entire situation is complicated by the fact that based on the ORIGINAL EXPECTED
ARRIVAL DATE, Canadian Tire, the exclusive Canadian retailer, has included the boots in its
weekly flyer that will be delivered to homes in the greater Vancouver area. (Canadian Tire is testing
the Rossi brand in the Vancouver market before rolling out the boots in stores across Canada.) Sales
of items feature sin the flyer are MUCH higher during the week that the flyer is in effect.
Canadian Tire is buying the boots at COST PER PAIR EXW AUD, and expects to sell BOOT
SALES PER DAY DURING FLYER (PAIRS) of Rossi boots starting on the FLYER START
DATE. (The buyer at Canadian Tire expects the sales to be at this average number each day.) If
Canadian Tire does not have the boots in stock it is expected that consumers will buy boots from
different brands/retailers rather than wait until Canadian Tire has the Rossi boots in stock.
Based on the original ETA for the boots how much will Canadian Tire lose in retail sales if the
boots are all shipped by sea? Should the Canadian Tire buyer get some or all of the boots shipped by
air? Please make the necessary calculations and justify your decision.
One final point. The footwear buyer at Canadian Tire has been set gross margin target of 50% by
the VP of Merchandising. Her annual bonus, potentially up to 17% of her $92,000 CAD annual
salary, depends on meeting the gross margin target. If the buyer’s gross margin in below 50% she
will get none of the bonus. If it is over 50% she will get half of the bonus. If it over 52% she will get
¾ of her bonus. If it is over 54% she will be all of her bonus.
Notes:
• This scenario represents a situation that members of the Douglas College supply chain
faculty faced on a number of occasions.
• Financial amounts are expressed in three (3) different currencies; AUD, CAD, and USD.
Make sure you don’t get things mixed up.
• Every student has a different set of data. Consequently you WILL NOT get the same
solution as your classmates. Copying someone else’s answer will be result in both of you
getting a grade of ZERO, among other possible penalties.
BUSN 3410 – Global Supply Chain Management – 2024 T1 Winter
Source: https://rossiboots.com.au/ and http://www.eveoncontainers.com/en-CA/used-40ft-shipping-container
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