Questions on Rialto’s Export Packaging and Pricing

Should Rialto’s use of at least 40% recycled contents be mentioned in the quotation given to the potential Brazilian buyer?

Questions

1. Rialto’s export packaging materials consisted of at least 40% recycled contents.Should this be mentioned in the quotation given to the potential Brazilian buyer?Why or why not?

2. Each package in this shipment will be bar coded. Is this an example of supply chain integration? Why or why not?

3. What price should be quoted for 40 tractors?

4. What price should be quoted for 100 tractors?

5. Is there another quantity between 40 and 100 where the costs per tractor are lower? If so, what is it? What are its costs per tractor?

6. For how long into the future should the price quote be made (i.e. for how long should Rialto agree to deliver at a certain price? Why?

7. In what currency should Rialto ask to be paid? Why?

8. After preparing the bid, Rialto calls LaFleur and says they are thinking of redesigning the tractor frame so that it can be disassembled taking up half of the space. A Rialto Speedwagon could now fit into an export package measuring 1 meter by 1 meter by 0.5 meter. The weight of the newly packaged tractor would continue to be 220 kilos.

a) By how much, if at all would this new package size reduce the answers to questions 3 and 4?