EcoWorld is a manufacturer of enclosed, decorative environments.They are composed of a hand-blown glass sphere filled with water,one fish, and some aquatic plants. The fish and plants worktogether so that the system will continue as long as it has light.The spheres have become a popular holiday gift so sales skewtowards November/December. EcoWorld, located in Seattle,Washington, wants to globalize its process. This year, the Europeancountry of Latervia, renowned for its cheap and expert glassblowing, has lifted its export tariff. EcoWorld has also identifiedanother European country, Rombia, as a new market because it has noimport fees. Raw materials will be transported via aircraft and thefinal product will be delivered by aircraft and then truck. You arehired by EcoWorld to assist them in developing a globalmanufacturing and distribution plan. Create a report that includesthe following elements:
1. Identify and assess the risks and benefits to moving thesupply chain to a global market. Be certain to analyze both thesupplier and the consumer ends of the supply chain.
2. Discuss how globalization will affect the various modes oftransportation. What are some strengths and weaknesses of each modeof transportation? How would a 10% increase in fuel prices affectEcoWorld's globalization plans?
3. Discuss how insurance costs will be affected by globalizationand the use of multiple means of transportation across borders.
4. How should EcoWorld adjust its manufacturing and distributionto take into account the product's seasonality?
5. What inventory valuation / policy method should EcoWorld use?Identify some of the costs for creating and maintaining inventoryof a final product. How will these costs be affected byglobalization?
