GSCM 520- Case—Grainger: Reengineering the China/U.S. Supply Chain

vWeek 10 Scenario Information: Assume that two gas stations are for sale with the following cash flows; CF1 is the Cash Flow in the first year, and CF2 is the Cash Flow in the second year. This is the time line and data used in calculating the Payback Period, Net Present Value, and Internal Rate of Return. The calculations are done for you. Your task is to select the best project and explain your decision. The methods are presented and the decision each indicates is given below.
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GSCM 520- Case—Grainger: Reengineering the China/U.S. Supply Chain

GSCM 520- Case—Grainger: Reengineering the China/U.S. Supply Chain
Case—Grainger: Reengineering the China/U.S. Supply Chain
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?

 

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