Evaluate the current china taiwan logistics costs

Reference no: EM133477082

Problem: Evaluate the current China Taiwan logistics costs. Assume a current total volume of 190,000 CBM and that 89 percent is shipped direct from the supplier plants in containers. Use the data from the case and assume that the supplier-loaded containers are 85 percent full. Assume that consolidation centers are run at each of the four port locations. The consolidation centers use only 40-foot containers and fill them to 96 percent 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 not include U.S. port costs in this part of the analysis. Evaluate an alternative that involves consolidating all 20-foot container volumes and using only a single consolidation center in Shanghai/Ningbo. Assume that all the existing 20-foot container.

Reference no: EM133477082

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