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Problem 1. Evaluate the current China/Taiwan logistics costs. Assume a current total volume of 190,000 CBM and the 89% is shipped direct from the supplier plants in containers. Use the data from the case and assume that the supplier loaded containers are 85% full. Assume that consolidation centers are run at each of the four port locations. The consolidation centers only use 40' containers and fill them to 96% capacity. Assume that it costs $480 to ship a 20'container and $600 to ship a 40' container. What is the total cost to get the containers to the United States? Do not include United States port costs in this part of the analysis.
Hint : This question doesn't provide any details in regard to the % of 20 or 40 foot containers used in the shipped direct part of the question. The case in the book also doesn't mention ANYTHING about the % put onto 20 nor 40 ft containers. HOWEVER, every single example of this problem includes the 21% used for the 20 ft and 79% used for the 40ft. HOW?! HOW did they get these numbers.
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