Advanced Logistics

Topics: Israel, Balkans, Costs Pages: 2 (442 words) Published: August 30, 2012
Tempo Ltd
Ashley M. Powers
BUS 632 – Advanced Logistics
Doctor Erick Aguilar

Tempo Ltd
Tempo Ltd. is a company in Antalya, Turkey established by eutrepreuer, Faith Terim, in 1989. “The focus of his business was to buy goods from nearby foreign sources and then find buyers for those products in the domestic Turkish market.” (Woods & Murphy, 2010, p 109). Currently, the company has connections in most European countries and Terim works very hard to keep theses connections. His last business trip was to the Balkan nations of Bulgaria, Romania and Greece where he held business meetings with the key businesspeople. Terim left those meetings with sales agreements in Bulgaria and Greece that would last into the middle of the year. Romania did not move as quickly, for the business man was not found of the small transactions Terim had presented. All of these items left him with many decisions to make. (Woods & Murphy, 2010). What are the total costs given in the case for the option of moving via Romania? Activity| Cost (U.S. $)|

Ocean transportation to Constantza| $42,000|
Suez Canal Charges| $3,000|
Truck| $15,000|
Handling| $6,250|
False Documents| $10,211|
Total| $76,461|

What are the total costs given in the case for the option of moving via Syria?

Activity| Cost (U.S. $)|
Ocean transportation to Latakia| $33,000|
Suez Canal Charges| $3,000|
Truck| $12,000|
Handling| $6,250|
Rusvet| $50,000|
Total| $104,250|
Which option should Terim recommend? Why?
Terim has a difficult decision because each option can be supported. The first option is Romania. This option is almost $30,000 cheaper than the other option, Syrian. So if looking at this from a cost perspective, Terim may go with the Romanian decision. The only problem is that the Romanian option will take three weeks longer than what the Syrian one. Another problem with the Romanian option is that it seems to be riskier....
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