DEVRY GSCM 520 WEEK 6 CASE STUDY

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DEVRY GSCM 520 WEEK 6 CASE STUDY

Grainger: Reengineering the China/U.S. Supply Chain

 

• 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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