Question

In: Operations Management

The management Hilton Hotels series has decided to build a hotel in Cairo by the Nile...

The management Hilton Hotels series has decided to build a hotel in Cairo by the Nile River. The management has finished all construction procedures and set up all the interior furniture that were bought locally from the local suppliers. The rest of the finishing items were decided to be imported from foreign suppliers.   The hotel management has instructed you on 01.04.2020 to be responsible for the transport of the imported items and set them up inside indicated areas in the Hotel before opining date on 01.05.2020.

The details of the cities of suppliers and the type of commodities to be transported EXW are as follow:

P.S. (All Dimensions with meter as measure unit)

  • Riyadh – KSA Furniture 50 pieces        transit times: air / 2 Hours – Sea / 3 hours from

                                       2.00 L*1.00 W*1.00 H         Jeddah + 2 days from Riyadh to Jeddah                                                                           by inland

Transport – Full overland freight from Riyadh to Cairo / 3 days.

  • New York – USA         Sanitary wares Transit Times: Air / 3 days – Sea / 18-21 days.

                                                      200 cartons. Dim 1.00 H* 0.5 W* 0.5 H

  • Milan – Italy                Glass cups, glass        100 Box 0.75L*0.75W*0.75H

Wares and China

Wares.             Transit Times: Air / 2 days – Sea / 6-8 days

  • Singapore                     Spot Lights                   Transit Times: Air / 3 days – Sea / 18 days

                                                       100 Cartons       Dim: 0.50L*0.50W*0.50H

  • Paris – France              Liquors – Wines Transit Times: Air / 3 days - Sea / 11-13 days

                                                    10 Boxes, 100 liters 0.50L*0.50W*0.50H

  • Düsseldorf – DE            Electric back up           6 batteries , Dim 2.25 L* 2.3 W* 2.00 H

Batteries (DGR) Transit Times: Air / 3 days – Sea / 11-13 days

***** Please decide and indicate:

  • Shipments to be shipped by air freight.
  • Shipments to be shipped by sea freight.
  • Shipments to be shipped by overland freight.
  • Possibility to combine 2 modes of transport (Multimodal) to saves both cost & time.
  • Air transport procedures.
  • Sea transport procedures..
  • Overland transport procedures.
  • Customs Clearance procedures.

**** Note that:

  • Pick up from suppliers may take 2-3 days.
  • Customs clearance in Cairo airport may take 3-4 days and in any Egyptian port it may take 5-6 days.
  • Set up of all items inside the Hotel after arrival of all commodities may take 5-6 days.

Solutions

Expert Solution

We will be breaking the solution into 3 parts:
1. Shipments to be shipped by Air Freight, Air transport procedure and Air Shipment Custom clearance procedure

2. Shipments to be shipped by Sea Freight, Sea transport procedure and Sea Shipment Custom clearance procedure

3. Shipments to be shipped by Overland Freight, Overland transport procedure and Overland Shipment Custom clearance procedure

  • Riyadh – KSA Furniture 50 pieces, Dimension Per Piece: 2*1*1 m3 = 2 m3/Piece
    • Total Dimension= 50*2 m3 = 100 m3 transit times: air / 2 Hours – Sea / 3 hours from

                                       2.00 L*1.00 W*1.00 H         Jeddah + 2 days from Riyadh to Jeddah                                                                           by inland

Transport – Full overland freight from Riyadh to Cairo / 3 days.


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