Background of example
BigIdeas Pty Ltd is an Australian company selling imported goods purchased from China
Purchases from Chinese suppliers are contracted in $USD
There are 4 suppliers Woo1, Woo2, Woo3 and Woo4
An identical set of products is purchased from each supplier - jeans, tshirts and shoes
A shipping agent Golden Sun Shipping packs all Chinese orders into a container and ships every month to Australia
Each order delivered is assessed by Australian Customs and Border Protection Service for GST
Freight, Insurance, storage and quarantine fees are payable on each shipment and are apportioned on a volume basis to stock
Lead time for delivery of orders is 3 months