Select a component or finished good that you are familiar with that is sourced from a low-cost country. Develop a total cost value proposition to evaluate the potential of continued sourcing from a low-cost country. For each of the cost components (material, manufacturing, transportation, packaging, inventory, handling, damage, risk, and security) identify the major trade-offs associated with sourcing locally versus sourcing from a low-cost country. Based on your assessment of the current environment in your country, what is the direction for each of these cost components over the next five years, and what is the likely trend regarding low-cost country sourcing.
Answer to relevant QuestionsDescribe in your words the meaning of spatial-temporal integration in logistical system integration. Discuss the differences between improving customer service through faster and more consistent transportation, higher inventory levels and/or expanded numbers of warehouses. Why is a cost-benefit evaluation important to logistical systems design efforts? Discuss the three challenges logistics faces as it manages on a process, rather than a functional basis. Describe each challenge and give an example of how it may be overcome. What could Kraft and Starbucks have done at the beginning of their distribution relationship that might have resulted in a more amicable end to the relationship? Be as specific as possible in your discussion
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