Supply Chain Management



Supply Chain Management

Question 1. Total costs of moving via Romania

Activity

Cost (US Dollars)

Ocean transportation to Constanza

42000

Snez Canal Charges

3100

Turkey

1500

Handling

6250

False Document

10211

Total

63061

Question 2. Total costs of moving via Syria

Activity

Cost (US Dollars)

Ocean transportation to Latakia

33000

Snez Canal Charges

3100

Turkey

1200

Handling

6250

Rusvet

50000

Total

93550

Question 3. Other costs and risks involved in these proposed transactions

1. North Korean official's entertainment can be seen as a big cost as well as a risk. To elaborate, the accommodations at five star hotel and resorts accompanied with high class meals and dinners would not be inexpensive. Further, if we look from the risk perspective, it might pose a risk since such entertainment might result in negative and upon going beyond hands, results in embarrassing publicity.

2. A probability remains that a portion of the rusvet fees might also rise unpredictably, specifically with those that are linked with the generation of fabricated documents. If the concerned benefactors of the documents realize the “enslaved” nature of shipment of lumber to Turkey from that of Romania, then there are prospects that these benefactors could benefit in order to surge their income.

3. Instable and risky volatile situation is another general risk associated with the proposed transactions in the Middle East. One indicator of this instability can be gauged through commotions in transportation routes; region's political volatility traffic has greatly influenced the Suez Canal which is an imperative consideration provided that the proposed shipments of lumber will be moved through the Suez Canal.

Question 4. Bribe in the Supply Chain

In a comprehensive view, the bribes would result in facilitation in the global perspective. In justifying this point of view, there are two aspects that need to be analyzed while examining the first portion of the question. The first extends to the legal viewpoint in countries like USA where bribes are considered to be illegal as per the theory. Under such approach, the ...