Case—Grainger: Reengineering the China/U.S. Supply Chain (p.457)
Please address the following.
· 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?
Basic dataTotal current volume (CBM)Direct shipping percentageDirect ship volume (CBM)Consolidation center volume 190,0000.89169,100190,000-169,100 = 20,900 Calculating the shipping cost of…