Case Study: Megabox Inc
|Paper Topic:||Case Study: Megabox Inc|
|Preferred language style:||English (U.S.)|
|Number of pages/words:||1 pages/275 words|
|Order Description (brief):||write a Case Study about Megabox Inc|
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Case Study: Megabox Inc
Case study presupposes in-depth investigation of the company under consideration. Are you sure that you have enough time and knowledge to provide a systematic way of looking at events, collecting data, analyzing information, and reporting the results?
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Megabox Inc is a leader in manufacturing color television sets and video cassette recorders (VCRs). It exports to one of the largest Middle Eastern markets – Zumburu’s blooming market.
1) Scheduled air cargo flights leave three times a week and carry 3000 ft per week. Another year air transportation contract is being offered to the company that would provide the extra needed space at a 10% discount but requires a commitment of at least 4000 ft per week during the contract period.
2) By sea the weekly conference container vessel offers all needed space but he is limited to shipping in 40 foot equivalent unit (FEU) container loads (CL) or in less than container load (LCL). A ship operator who is out of the conference offered a semimonthly container service to Zumburu using 20 FEU containers at a 15% discount over the conference freight rates. Marketing department prepares estimates for next year sales that is discounted by 10% and used to make predictions for transportation costs.
3) Total Shipping costs are also estimated on marketing sales forecasts discounted at 10%. Cheapest costs are for sea conference containers (CL) at a weekly cost of $46,145. Highest total shipping costs per week are for scheduled air at a cost of $90,079. The twelve-month deal provides total shipment costs of $82,648.
4) Transportation cost is determined by volume and weight of shipment. The findings shoed that transportation costs of Conference Containers (CL) are cheapest costs at $34,678 which is 47% of transportation costs of Scheduled Air of $74310.
The following four methods of shipping are to be compared: Scheduled Air, Sea Conference
40 Foot Equivalent Unit (FEU) container loads (CL), non-conference 20 FEU less than
container load (LCL), and the twelve-month Air contract.
By comparing the shipping costs for each method the investigator finds out:
Table 1. Number of Units Forecasted to sell in Quarters 1, 2, 3, & 4
Table 2. Adjusted Forecasted Volume, Weight and Price for Quarters 1, 2, 3, & 4
Table 3. Adjusted Forecasted Volume, Weight and Price for One Year
Table 4. Adjusted Forecasted Volume, Weight and Price per week for Quarters 1, 2, 3, & 4
Table 5: Adjusted Forecasted Volume, Weight and Price per Week
Table 6: Transportation Costs per Week for Scheduled Air, CL, LCL, 12-month air deal
Table 7: Total Transportation Costs per year for shipping methods: Scheduled Air, CL, LCL, 12-month deal.