LOGISTIC GROUP ASSIGNMENT

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Centennial College *

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May 18, 2024

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Group Assignment- Group 1 Global Logistics Name: Ashwini Sharma – 301379960 Preksha Patel - 301426406 Saumya Shah – 301416507 Kartik Sharma – 301327499 7/04/2024 Professor Name: Mauro Spies

Answer 1: Calculate Chargeable weight: ➔ 4.5 cubic meters of materials equal to 274607 cubic inches ➔ To convert cubic inches to Kgs, divide cubic inches by 366 (as per the US air cargo volume conversion) ➔ therefore 274607 cubic inches equals 274607 / 366 = 750.30 kgs. ➔ Since the actual weight of the consignment is 1200 kgs. Which is more than the chargeable weight, we shall consider 1200 kgs for freight calculation. ➔ The weight of the consignment is 1.2 metric tons which is 1200 kgs. ➔ Given; US $ 1 = CAN $ 1.30 ➔ EURO 1 = CAN $ 1.40 ➔ Conversion of EURO and Canadian dollar to the US dollar and pound to Kg. ➔ EURO 1 equals US $ 1.21. ➔ CAN $ 1.41 equals to US $ 1.08 ➔ One hundred pounds equals 45.36 kgs. Freight Calculation: Alternative 1 Montreal - JFK by express truck CAN $ 15.00 / 100 lb. = US $ 11.62 / 45.36 kgs. (A) For 1200 kgs consignment (1200 / 45.36) * US $ 11.62 = $ 307.41 JFK - RUH; +500 - US $ 11.02 /kg (B) for 1200 kgs. consignment 1200 * US $ 11.02 = $ 13224 Total Freight charges (A + B) $ 307.41 + $ 13224 = $ 13531.41 Alternative 2 YUL -CDG; +300 Kgs - CAN $ 3.36/ Kg = US $ 2.60 /Kg. (C) For 1200 kgs of consignment = 1200 kgs * US $ 2.60 /kg. = $ 3120 CDG - CAI; + 500 kgs. - EURO 6.93 / Kg. = US $ 8.39 /kg.

(D) For 1200 kgs of consignment = 1200 kgs * US $ 8.39/kg = $ 10068 Total freight charges (C + D) ($ 3120 + $ 10068) = $ 13188 . ALTERNATIVE 1 ● Montreal to JFK $ 307.41 ● JFK to RUH $ 13224.00 ● Total Freight $ 13531.41 ALTERNATIVE 2 ● YUL to CDG $ 3120.00 ● CDG to CAI $ 10068.00 ● Total Freight $ 13188.00 Answer 2: Evaluating the risks associated with each factor in the context of the two available transportation options is the process of conducting a CREEEPSS risk analysis (which considers Cultural, Regulatory, Economic, Environmental, Ethical, Political, Social, and Security factors) for the delivery of emergency pharmaceuticals to Yemen. These variables may have the following effects on the choice: 1. Cultural: For operations to run well, it is essential to understand local logistical procedures and cultural standards. Both routes pass through areas with diverse cultural customs, which could affect communication and cargo management. 2. Regulatory: It is necessary to consider the import/export and transit laws of every nation along the route. This covers clearances through customs, possible levies, and adhering to international shipping laws, particularly about medicine. 3. Economic: Evaluating each route's cost-effectiveness is crucial. Freight prices, the possible cost of delays, and changes in exchange rates should all be considered. 4. Environmental: Considering the environmental impact of every transportation route, including the carbon footprint of air vs truck freight, is important, particularly in light of the pharmaceutical industry's growing emphasis on sustainability. 5. Ethical: Ensuring that medicines reach those in need in Yemen without abuse is a priority. Ethical aspects also include the working conditions of the participants in the transport process.

6. Political: The stability of countries along the way and their diplomatic relations with Yemen may affect supplies. Political tensions or sanctions may affect the movement of goods. 7. Social: Social impacts must be considered, including how the offer affects the local population's perception of the organizations involved. 8. Security: The risks associated with theft, seizure, or alteration of medicines during transport are critical, especially in conflict zones. Route Analysis and Recommendation:  Montreal – New York – Riyadh (Alternative 1) o Regulatory and Security risks might be lower, given the established nature of the air freight routes and the involvement of reputable companies like UPS. o Economic considerations are significant due to the higher freight rates, especially for the JFK to RUH segment. o Political and Social risks could be moderate to high due to the geopolitical situation in the Middle East and its proximity to Yemen.  Montreal – Paris – Cairo (Alternative 2) o Economic risks are lower due to more favorable freight rates. o Environmental impact could be slightly higher due to the longer route and additional handling. o Political and Security risks may be increased due to the complexity of the route and the number of handovers between agents. Considering the CREEEPSS factors, Alternative 1 (Montreal – New York – Riyadh) seems more viable. It offers a more direct route, potentially lower regulatory and security risks, and the involvement of a single, reputable freight carrier (UPS) that might mitigate some of the ethical and social risks. The economic cost is higher, but the reduced complexity and lower risk of delays or complications may justify the expense, especially given the high value and sensitive nature of the pharmaceutical cargo. Answer 3: It is dangerous to carry products across Yemen due to the ongoing conflict and lack of security, thus land transportation is necessary. We provide two choices that reduce risk by using both air and ground transportation. The first route would go via air to Sana'a, the capital of Yemen, arriving at Sana'a International airport, followed by road to Amran from Cairo. Because of the ongoing fighting and the possibility of assaults at the airport and other locations, this is riskier but also speedier.

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