Create economical and viable route for the containers

Assignment Help Operation Management

Reference no: EM132247643

Create an economical and viable route for the containers of Bromine to move from Houston (USA) to Baku, Azerbaijan. This will mean comparing relative routes and choosing the most efficient and effective route. The sale is done under an FCA (Houston Container Terminal, Port of Houston) Incoterms 2010 sale with the title transfer at the international border (3 days after sailing) and the Point of Payment trigger is reaching International Waters, and payment within no longer than 30 days.

There is no one route for your assignment. You have the tools to choose a number of routes and assess them to propose one which is the best based on your criteria. You should consider every part of the route:

Which carrier and its reputation;

How many trans-shipments and Port (Use the LPI to find out the potential for delays with the carrier reputation);

How many more changes are necessary (beware rail gauge changes);

Does the country you are crossing to get to the end country have poor or good LPI ratings;

What are the costs for each leg – there are websites that will give you some reasonable estimates of the costs, but it is up to you to search for these and validate them.

You must look at alternatives, and then with objective criteria, choose one to fully cost out.

Questions to be answered:

Give your reasons for choosing the route, and the rejection of the major alternatives (less than 50 words). You must do this comprehensively:

Give the sequential steps to achieve the movement from source to end destination POD. The sequential steps are for the physical movement only and must be listed in the sequence they will occur in a normal movement. This requires steps such as for the process for obtaining and loading a container: Make a Booking; collect container; load container: deliver to harbor: obtain Terminal Receipt.

Create the principles of the SLI (just the headings of the instructions which need to be given to the forwarding company), and the CI (using the formatted spreadsheet provided) as documents for the move. Use the USHTS classification for Bromine in the CI.

You will need to issue a Pre-alert to the customs broker in the receiving country. Define the documents that the Pre-alert must contain (heading only such as Commercial Invoice).

This move will use a L/C. Write the terms of the payment transfer for the goods as a clause so payment is effected at the time when the goods enter Azerbaijan. Use as close as is possible formal language that would be used in a contract.

What you must deliver:

Which moves are done by what mode and route – map or a route diagram? Must be in the real world so this must be a route and it must be a carrier etc.

Use an Excel Spreadsheet (unless you have Project) and list the steps in blocks that show the sequence.

The rest is spelled out and just needs you to answer all of the questions. Be careful to do that.

Reference no: EM132247643

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