1. The shipping industry structure will be explained via the 5 competitive forces of Porter: THREAT OF NEW ENTRANTS | New entrants face entry barriers such as: Large financial resources required to invest in a container terminal or in a shipping line. There is a big time lag between the investment (buying cranes‚ ordering vessels) and the start of operations. Conferences among shipping lines will determine the price and other conditions of the market. Vertical integration between terminals
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INCOTERMS USE FOR SHIPPING TERMS Incoterms rules are international trade terms promulgated by the International Chamber of Commerce (ICC). Though used primarily in international trade‚ they are seeing increasing use in domestic trade. When used‚ they should specify the specific shipping term‚ the location‚ Incoterms‚ and the edition. An example is “DAT Pier 82 Port of Philadelphia Incoterms® 2010.” Incoterms rules specify the point at which risk of loss occurs‚ but not‚ strictly speaking‚
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Assignment #4: Case Problem “Stateline Shipping and Transport Company” Courtney Boone June 10‚ 2012 MATH 540 Quantitative Methods Professor Gelonia Dent Rachel has estimated the cost of shipping a barrel of waste from each of the six plants to each of the three waste disposal sites as shown in the following table: Waste Disposal Site | | | | Plant | Whitewater | Los Canos | Duras | Kingsport | $12 | $15 | $17 | Danville | 14 | 9 | 10 | Macon | 13 | 20 | 11 | Selma | 17
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company need funds? First‚ Butler Lumber Company in the spring of 1991 anticipated a further substantial increase in sales. It means there are more working capital associated with the company’s increasing sales volume. Second‚ although they have good profits‚ the company had experienced a shortage of cash. The company’s current borrowing from Suburan National Bank almost reaches the maximum loan that SN Bank would make. Meanwhile‚ the SN Bank now asks Butler Lumber to secure the loan with its real
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Case 1: Clarkson Lumber As a financial consultant to Clarkson Lumber‚ I analyzed four potential scenarios with relatively high probabilities of occurring given Clarkson Lumber’s current situation. The four scenarios analyzed are continued rapid growth of Clarkson Lumber with Suburban Bank as the creditor‚ slowed growth with Suburban Bank as the creditor‚ continued rapid growth with Northrup Bank as the creditor‚ and controlled rapid growth with Northrup bank as the creditor. Clarkson Lumber’s
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Assignment #4: Case Problem "Stateline Shipping and Transport Company" Read the ’Stateline Shipping and Transport Company" Case Problem on pages 273-274 of the text. Analyze this case‚ as follows: In Excel‚ or other suitable program‚ develop a model for shipping the waste directly from the 6 plants to the 3 waste disposal sites. Solve the model you developed in #1 (above) and clearly describe the results. In Excel‚ or other suitable program‚ Develop a transshipment model in which each of the
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Case Study 2 What “Wood” You Do? Background/Summary: Lorman Lumber is a publicly traded company with widely held shares. Its Yamica location in rural Oregon is one of the company’s largest. The purpose of the plant is to process and treat wood‚ which it does through a number of facilities. The Sawmill began producing lumber products in 1947‚ which it does by peeling‚ milling‚ and chipping raw wood. Lorman has a known record of producing good profits‚ and will often pay out generous performance-based
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plant ‘i’ to the j-th waste disposal site‚ where i = 1‚ 2‚ 3‚ 4‚ 5‚ 6 and j = A‚ B‚ C. The objective function of the manager is to minimize the total transportation cost for all shipments. Thus the objective function is the sum of the individual shipping costs from each plant to each waste disposal site: Minimize Z = 12+ 15+ 17+ 14+ 9+ 10+ 13+ 20 +11 +17 +16 +19 +7 +14 +12 +22 +16 +18 The constraints in the model are the number of barrels of wastes available per week at each plant and the number
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Drybulk Shipping – Strategic Analysis By Hilmi Armoush HA519 Table of Contents Executive Summary 2 Macroeconomic Drivers 3 PESTEL Analysis 3 Key Drivers 4 Critical Uncertainties 4 Future Scenarios 6 Sailing in the Dark 6 Imbalance Seas 6 The Greener Wins 7 Sea Marathon 8 Competitive Analyses – Drybulk Shipping 8 Market Outlook 8 Porter Five Forces Model 9 Entry Barriers 9 Threat of Substitutes 10 Bargaining Power of Buyers 10 Bargaining Power of Suppliers 10 Rivalry between
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Butler Lumber 1. Why does BL need to borrow money to support its profitable business? Draw up a Fund Flow Statement‚ i.e.‚ Funding and Uses a. Funding would include Bank Borrowing‚ Trade Credit‚ Retained Earnings‚ Cash‚ Accrued Expenses b. Uses would include Inventories‚ A/R‚ Buyout‚ Reduction in debt‚ increase in fixed assets/accounts Response: BL needs to borrow money from the bank to take benefit of the purchase discounts. During the last two years‚ BL had taken very few purchase discounts
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