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SCM1005 – Transportation and Logistics
Assignment 1 – Supplier Selection
Value (%)
This assignment is worth 15% of your course grade.
Course Learning Outcomes (CLOs)
By completing this assessment, you will be able to:
● CLO 2: Determine the information and documentation as well as appropriate tools
required to facilitate the flow of material, goods and/or services within a supply chain
● CLO 3: Identify and assess the relevant costs involved in transportation decision-making
● CLO 7: Apply a working knowledge of the documentation required for international
transportation, customs and import/export processes, and current international
commercial terms (INCOTERMS) to facilitate the international movement/distribution of
goods
Task
Read the case in Appendix A and answer the questions included. Student must provide a
spreadsheet showing their work for questions 1,2 and 3.
How to Complete This Assessment
1. Assignment shall be completed individually.
2. The use of generative AI programs like ChatGPT, or paraphrasing websites like Spinbot are
not permitted. You can succeed (and you will learn more) without relying on these tools.
3. I encourage you to use the course textbook and materials to inform your work. No
external research is required to complete this assignment.
Grading Criteria
Proficient
(2 points)
Emerging
(1 point)
Incorrect, not
included, or needs
development
(0 points)
Grade
Question 1 The answer is correct;
a spreadsheet is
provided to show work.
Minor mistakes in the
calculation or no
spreadsheet is
provided to show
work.
The question is not
answered;
Major mistakes in the
calculation
Question 2 The answer is correct;
a spreadsheet is
provided to show work.
Minor mistakes in the
calculation or no
spreadsheet is
provided to show
work.
The question is not
answered;
Major mistakes in the
calculation
Question 3 The answer is correct;
a spreadsheet is
provided to show work.
Minor mistakes in the
calculation or no
spreadsheet is
provided to show
work.
The question is not
answered;
Major mistakes in the
calculation
Question 4 The response is welldeveloped, answers
the question directly,
and provides evidence
of critical thought and
application of course
materials.
The questions is
partially answered;
the answer is brief, or
the answer requires
more development
The answer is extremely
brief, does not answer
the question, or is
skipped entirely.
Question 5 The response is welldeveloped, answers
the question directly,
and provides evidence
of critical thought and
application of course
materials.
The questions is
partially answered;
the answer is brief, or
the answer requires
more development
The answer is extremely
brief, does not answer
the question, or is
skipped entirely.
Completed selfassessment.
Max. 1 point
Self-assessment
completed in a
thoughtful way
(1 point)
Self-assessment is
partially completed,
or answers require
more development
(0.5 points)
Self-assessment not
completed
(0 points)
Total Points /11
Total % %
How to Submit Your Assessment
1. Complete the Assignment 1 Self-Assessment
2. Submit your answers to questions 1-5 in the dropbox in Moodle. Include a spreadsheet to
show calculations for questions 1, 2, and 3. Questions 4 and 5 can be included in the
same file or a separate document.
Due Dates:
January 24, 2024 at 11:59pm.
If you are short on time (for whatever reason), request an extension rather than commit
academic dishonesty (examples of academic dishonesty include: asking a friend to share their
work, using ChatGPT, or spinbots, copying from the internet, etc.).
You may request an extension via email prior to the original due date. Requests received after
grading has been completed will not be considered. Keep your request simple: include which
assignment and the requested new due date. You do not need to reveal the details of your
private life in order to be granted an extension. All reasonable requests within the course term
shall be granted (the last possible submission date for all assignments is Feb 21, 2024).
Appendix A:
The Widget Company (TWC) is a retailer of widgets located in Sudbury, Ontario. The yearly
demand for widgets is 48,000 units.
TWC has a contract with a third-party logistics company, which includes the rates in Table 1
below. TWC only pays these if the costs are not included in the supplier’s quoted price.
INCOTERMS provided in the suppliers’ proposals (Table 2) will determine what is included in
their price. If insurance is not included in the suppliers’ price (as per Table 2), TWC will pay the
Third-Party logistics company for insuring the goods (as per rates in Table 1). All widgets are
containerized for shipment. Up to 4,000 widgets can be loaded into a 20ft container, and up to
8,000 widgets can be loaded into a 40ft container.
TWC has received proposals from 3 suppliers to supply widgets. You are tasked with making the
supplier selections and order quantity decisions for the rest of the year. Table 2 contains a
summary of the 3 proposals.
Table 1 – Third-Party Logistics Company Rates
20ft container price 40ft container price
Export Packaging $500 per container $1,000 per container
Loading Charges (at Origin) $200 per container $300 per container
Delivery to Port (at Origin) $400 per container $600 per container
Export Duties, Taxes &
Customs Clearance
From Mexico: none
From China or Nigeria: 5.5% of
the value of the merchandise
From Mexico: none
From China or Nigeria: 5.5%
of the value of the
merchandise
Origin Terminal Handling
Charges
$100 per container $150 per container
Loading on Carriage $100 per container $150 per container
Freight Charges (Port to Port
Delivery)
From Mexico: $3,400 per
container
From China: $7,000 per
container
From Nigeria: $5,000 per
container
From Mexico: $4,600 per
container
From China: $13,000 per
container
From Nigeria: $10,000 per
container
Insurance 1% of the value of the
merchandise
1% of the value of the
merchandise
Destination Terminal
Handling Charges
$250 per container $350 per container
Delivery to Destination (from
Port)
$800 per container $1,200 per container
Unloading at Destination $150 per container $200 per container
Import Duty, Taxes, and
Customs Clearance
From Mexico: none
From China or Nigeria: 7% of
the value of the merchandise
From Mexico: none
From China or Nigeria: 7% of
the value of the
merchandise
Table 2 – Supplier Proposals
Supplier 1: Supplier 2: Supplier 3:
Price per unit: $23.05 $21.55 $24.05
INCOTERM: EXW FCA CPT
Minimum Order
Quantity:
15,000 12,000 2,000
Supplier Location: Guanajuato, Mexico Qingdao, China Lagos, Nigeria
Lead time (days): 12 35 24
Widgets are insured in
transit by the supplier:
No Yes Yes
All amounts are in Canadian Dollars.
Questions
1. What is the landed price per widget for Supplier 1 if ordering the minimum order quantity?
Provide your answer in a spreadsheet showing your calculations. Remember to use the
most economical container size if you are using the Third-Party Logistics company rates.
2. What is the landed price per widget for Supplier 2 if ordering the minimum order quantity?
Provide your answer in a spreadsheet showing your calculations. Remember to use the
most economical container size if you are using the Third-Party Logistics company rates.
3. What is the landed price per widget for Supplier 3 if ordering the minimum order quantity?
Provide your answer in a spreadsheet showing your calculations. Remember to use the
most economical container size if you are using the Third-Party Logistics company rates.
4. Which supplier proposal carries the least amount of risk for TWC? Why?
5. Which supplier would you recommend and why? List any other issues and transportation
costs that may influence the decision.