Question: I Need help please Domestic or Out Sourced Shipping cost per pound(ocean) Import duties at port per pound Storage space at dock per year Storage
I Need help please
Domestic or Out Sourced Shipping cost per pound(ocean) Import duties at port per pound Storage space at dock per year Storage and handling cost at the port per lb Trucking cost to Nashville per pound Freight expediter cost per year Cost of labor per pound Costof material per pound Warehousing costs per pound Warehousing costs per year (facility rent) Fixed cost 7 Variable cost/lb 3 Total cost Actual pounds 7 Best option at 10 million pounds Why did you select this option? Domestic or out sourced Option 1 0.023 0.850 1.000 0.130 200,000 Option 2 0.250 0.050 30,000 0.150 0.163 35,000 0.110 1.050 0.130 500,000 Option 3 0.163 15,000 0.130 300,000 Three potential options are available for the major components used to manufacture your finished products Option 1 involves the use of domestic suppliers that are 300 miles from your facility Option 2 involves the use of an Asian supplier that is 10,000 from Nashville (8000 miles to California port and 2000 highway miles to Nashville) Option 3 involves the use of a supplier in Monterry, Nuevo Leon, Mexico which is 2000 highway miles from Nashville We will assume a standard 40' ft ocean container and a standard over the road truck load to be 40,000 pounds All costs are per pound or per year All ellow boxes must be populated in addition to the two text boxes at the bottom of the spreadsheet At what levels would Option 1 be preferred? At what levels would Option 2 be preferred? At what levels would Option 3 be preferred ?
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