Instructions for the mid-project check point ocean project deliverable

The idea behind this deliverable is finding an optimal (or at least a commercially profitable and
logistically viable) way of shipping the product. You have some permanent constraints, i.e.
things you cannot influence very much, such as the market price for your chosen product in the
US and in the country of export; some flexible constraints, e.g., you can change the product or
the size of the container, but once selected, they impose certain constraints (price, capacity), and
some variables that are easy to change, e.g., how many units of product you want to put in one
carton and how many cartons on one pallet. Additionally, you will be required to produce
evidence that you have been working in other directions, such as learning about the required
documentation and deciding on insurance type.

This situation lends itself to presenting (modeling) a problem in Excel. It is a useful skill,
particularly for employment. So let’s try our hand at it. I’ll help you by identifying items that you
need and you will think if it is possible to express their relationships through easy formulas
involving basic mathematics (addition, multiplication, etc.). Here are the details.

You should create an Excel file with specific information for all items below. It should
demonstrate that you have thought out the details enough so that they do not contradict each
other and make business sense on their own and together. Looking at the items below, it is easy
to see that some of them are related to each other and can be estimated by formulas. Some others
may serve as constraints (e.g., “I want to ship my containers full, but I choose to ship my
container by road for on-carriage (drayage), so my gross container weight when combined with
the tractor and chassis weight should not exceed the typical legal vehicle gross weight limit of
80,000 lbs, unless I am in a state with a higher weight limit.”) So essentially, this is presented as
a well-known type of a problem: an optimization problem with constraints, a perfect exercise to
practice and develop analytical abilities. I could have created an Excel file for you. It would have
simplified my grading, but it would have taken away from your learning, so I am letting you play
with it instead. The format is up to you. You can introduce additional items and values for them
to help me understand your formulas. Again, the idea is to demonstrate that you have found an
optimal (or at least a good) quantity and method for your shipment, given the existing
constraints. Formally applying methods like linear programming may prove difficult and is
neither required nor expected, but you can certainly try if you prefer. My recommendation
though is to just start filling in the numbers and see how they work with each other. Make
changes, go through several iterations and eventually you will see very clearly the relationships
among these variables and constraints and will arrive at a commercially attractive and
logistically viable solution.

Here are the items that your Excel spreadsheet must contain (you can change the order and
include other relevant items). For not applicable items (e.g., certain packaging types) enter N/A.
1. Country: Portugal
2. Group number:2
3. Group members (names): Hannah, Yaden, Younge, Court
4. Product manufacturer’s name: Corticeira Amorim (largest world producer of cork
products and the most international of Portuguese companies)
5. Product name: Compressed or Composition cork
6. Brief product description (what you would put on a commercial invoice):. insulation of
agglomerated cork, or insulation and
isolation corkboard of thicknesses ranging from
1/2 inch to 4 inches and standard sheet sizes of 12
inches by 36 inches;
7. HTS 10-digit product code: 4504.10.2000,
8. Full HTS product description for that code: Agglomerated cork may refer to either
compressed cork or
composition cork. According to the Additional U. S. Note to
Chapter 45 of the HTS, the term "compressed cork" means forms
molded under heat and compression from cork particles without the
addition of other materials. The applicable subheading for
insulation board made of compressed cork will be 4504.10.2000,
HTS, which provides for insulation, coated or not coated, of
compressed cork. The rate of duty will be Free.
9. Customs duties rate, e.g., 10%:2.2 cents per kilogram
10. Product unit net weight (weight and weight units), e.g., 454 grams: Cork is a very light
raw material, weighing just 0.16 grams per cubic centimeter, and can float.
11. Type of primary product packaging by manufacturer, e.g., PET bottle: corkboard of
thicknesses ranging from
1/2 inch to 4 inches and standard sheet sizes of 12
inches by 36 inches; Blocks and sheets are normally either packed in cartons and
strapped on to pallets or loaded directly on to a pallet with an overall protective covering
of cardboard and/or waterproof paper. Insulation Corkboard is shipped almost always in
cartons, but sometimes just shrink-wrapped in packs on pallets. Despite special protection
sometimes provided, corners can become damaged in transit due to mishandling. The
consignment does not usually suffer a total loss on account of this as part-sheets can be
used, but there are occasions when only full sheets will suffice. Excess atmosphere
humidity can be absorbed by sheets and boards which might involve drying at destination
and this can cause buckling, which may render them unusable. Humidity and heat can
also cause mould growth and, if this occurs, the cork must be burnt quickly before the
infection spreads. Sea water wetting would render sheets, blocks and boards unusable in
most cases.
12. Estimated weight (weight and weight units) of primary product packaging:
13. Secondary packaging type, e.g., cardboard carton:
14. Estimated weight (weight and weight units) of primary product packaging:
15. Number of product units per secondary packaging:
16. Gross weight (weight and weight units) of product in secondary packaging (formula
expected):
17. Additional product packaging and unitization for ocean shipping, e.g., 48 secondary units
per pallet, with cardboard corners and top cover, stretch-wrapped:
18. If applicable, pallet type and weight (weight and weight units):
19. Gross weight of one unit (e.g., pallet) of packaged and unitized product for ocean
shipping (weight and weight units):
20. Volume of packaged and unitized product for ocean shipping (volume and volume units):
21. Container type and size, e.g., dry high cube 40 ft:
22. Empty container weight (weight and weight units):
23. Bracing and dunnage (yes/no; type, weight):
24. Gross container weight, loaded and sealed (weight and weight units):
25. Number of containers per consignment (one-time shipping):
26. Number of ocean shipping units (pallets) per container:
27. Secondary product units per consignment:
28. Primary product units per consignment:
29. Percent container capacity utilization, cube:
30. Percent container capacity utilization, weight:
31. Loading point for container (the city and place where goods are loaded into the container
in the foreign country; think about some potential options – what makes the most
business sense for both the seller and for you: at the manufacturer’s finished goods
warehouse by the plant, at a distribution center anywhere in the country or at a port
warehouse):
32. Port of departure:
33. Destination port:
34. Identify ocean carrier (actual ocean line that operates container service between these
ports):
35. Final destination in the US:
36. Mode of transportation for pre-carriage:
37. Type of transportation for pre-carriage, e.g., break-bulk by FTL:
38. Mode of transportation and type of vehicle for on-carriage, e.g., rail, articulated 5-unit
well cars for double-stack containers:
39. Identify carrier or combination of carriers for on-carriage, e.g., BNSF:
40. Maximum capacity of vehicle for on-carriage (weight and units or cube and units,
whichever applicable):
41. Number of vehicles required for on-carriage:
42. Maritime insurance type:
43. Documents for ocean shipping:
44. Incoterm (and variant, if applicable) used:
45. Payment method to product seller:
46. Currency:
47. Amount to pay in this currency:
48. Type of currency risk mitigation, if any:
 49. Total amount due to product seller in USD:
50. Total shipping and insurance costs not included in sales contract price, USD:
51. Total customs duties, USD:
52. Expected sales for the consignment (gross receipts from your customer to your account),
USD:
53. Expected gross margin for the consignment (sales less product cost and all logistics costs
covered by this project), USD:

Suggested column format:

Item Value Measurement Unit Comment

Add rows and columns as necessary.

!! Use formulas in the spreadsheet wherever possible!!

On another sheet or as a separate file, include pictures of the product with and without packaging
(or a similar product, if the identical packaged product picture is not available, to demonstrate
the packaging). – Thank you!

References

https://www.portugalist.com/portuguese-cork-guide/

4. https://amorimcorkcomposites.com/en-us/about-us/amorim-group/#:~:text=Corticeira
%20Amorim%20is%20the%20largest,cork%20industry%2C%20unlike%20any%20other.

https://amorimcorkcomposites.com/media/8022/ts-1028.pdf

https://www.cargohandbook.com/Cork_and_cork_products

Lightness

Cork is a very light raw material, weighing just 0.16 grams per cubic centimeter, and can float.

Flexibility/compressibility
Each cork stopper is made up of around 800 million airtight cells. Among them is a gaseous
mixture which allows it to be compressed to around half its thickness, without losing any
flexibility, and to be decompressed and return to its original shape. This is what is called an
elastic memory. Cork is the only solid which when compressed on one side, does not increase in
volume on the other. This feature enables it to adapt to variations in temperature and pressure,
without compromising its integrity as a stopper.

Impermeability

Thanks to suberin and ceroids, it is practically impermeable to liquids and gases.

Decay resistant

Cork is highly resistant to moisture, and therefore to subsequent oxidation and decay.

Insulation

Cork is an excellent thermal, acoustic, and vibration insulator. When transformed into stoppers,
its insulation properties contribute to making it the best protection for wine and spirits against
temperature variations or contamination and possible negative effects from storage and transport
conditions.
In construction, it has clear advantages in regard to the quality of buildings, indoor air, and
comfort, and may be used in the waterproofing of infrastructures, foundations and underlays, in
acoustic and thermal insulation and the final coverings for floors, walls, ceilings, facades, and
roofs.

Recyclable and renewable

Cork is a natural raw material which is 100% recyclable and renewable.