DEVRY GSCM 520 WEEK 6 CASE STUDY
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Grainger:
Reengineering the China/U.S. Supply Chain
• Evaluate the current China/Taiwan logistics
costs. Assume a current total volume of 190,000 CBM and that 89% is shipped
direct from the supply is plants in containers. Using the data from the case
and assume that the supplier-loaded container is 85% full. Assume that
consolidation centers are run at each of the four port locations. The
consolidation centers only use 40-foot containers and fill them to 96% capacity.
• Assume that it costs $480 to ship a 20-foot
container and $600 to ship a 40-foot container. What is the total cost to get
the containers to the United States? Do you include U.S. port costs in this
part of the analysis?
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