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Global Logistics Management Essay

Paper type: Essay
Pages: 1 (190 words)
Categories: Essay, Management
Downloads: 18
Views: 2

Suppose that a maker of men’s shirts can bring forth a frock shirt in its Houston, Texas works for $ 8 per shirt ( including the cost of natural stuffs ) .

Chicago is a major market for 100,000 shirts per twelvemonth. The shirt is priced at $ 15 at the Houston works. Transportation and storage charges from Houston to Chicago sum to $ 5 per doppelzentner ( cwt. ) . Each packaged shirt weighs 1 lb.

As an option, the company can hold the shirts produced in Taiwan for $ 4 per shirt ( including the cost of natural stuffs ) . The natural stuffs, weighing about 1 lb per shirt, would be shipped from Houston to Taiwan at a cost of $ 2 per hundredweight. When the shirts are completed, they are to be shipped straight to Chicago at a transit and storage cost of $ 6 per hundredweight. An import responsibility of $ 0.50 per shirt is assessed.

a. From a logistics-production cost point of view, should the shirts be produced in Taiwan? B. What extra considerations, other than economic 1s, might be considered before doing a concluding determination?

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Global Logistics Management Essay. (2020, Jun 02). Retrieved from https://studymoose.com/global-logistics-management-new-essay

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