Orchid Vale grows cut flowers for florists in another country. The products are packed at the farm and then sent 340 miles to an airport. The business can u...
Question 1 Report
Orchid Vale grows cut flowers for florists in another country. The products are packed at the farm and then sent 340 miles to an airport. The business can use air freight for an overnight flight, or send the flowers by refrigerated road transport and ferry. The road and ferry option costs less, but normally takes two days. Florists pay a higher price for flowers that are fresh and arrive before a wedding weekend. Orchid Vale is considering whether the extra cost of air freight will improve profit. It also needs to decide how the flowers should be protected during transport because crushed or wilted products cannot be sold.
(a) Which two reasons make air freight a suitable transport option for Orchid Vale's flowers? [4]
(b) State two disadvantages of using air freight. [4]
(c) Explain three ways in which careful packaging can help the business during transport. [6]
(d) Which three factors should Orchid Vale compare when deciding whether the higher air freight cost is worthwhile? [6]
Answer Details
(a) Air freight is very fast, so flowers are more likely to arrive fresh. It also helps Orchid Vale meet the fixed wedding deadline [4]. It is particularly suitable for perishable, high-value goods sent to overseas customers.
(b) Air freight has high charges. It may also have space or weight limits that restrict the quantity sent [4]. Flight delays, security procedures, handling charges and environmental impact are further disadvantages.
(c) Careful packaging helps because:
- rigid outer boxes prevent flowers being crushed [2];
- protective materials reduce damage caused by movement [2];
- temperature-protective packing reduces wilting [2].
Keeping stems upright and separate, plus clear fragile/perishable labels, also protects product quality. [6]
(d) Compare the difference in total transport cost [2], the extra selling price or profit from fresher flowers [2], and delivery time and reliability [2]. Spoilage levels, available capacity and the wedding deadline are also important. The higher cost is worthwhile only if the additional revenue and reduced waste justify it. [6]
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