Q$1$: Using the exchange rates cited in the case, what is the INITIAL PURCHASE COST

PER UNIT $($in US Dollars; do not include transportation costs$)$ paid to:

a$.$ Dong Hai Supply in Chengdu, China?

b$.$ CousinsAg in Wahoo, Nebraska?

c$.$ Staberhofer Supply in Freising, Germany?

Q$2$: What is the AVERAGE TIME for an order filling a TEU container to come from:

a$.$ Dong Hai Supply in Chengdu, China to IDC$$s AllianceTexas$$ Distribution

Center?

b$.$ CousinsAg in Wahoo, Nebraska to IDC$$s AllianceTexas$$ Distribution Center?

c$.$ Staberhofer Supply in Freising, Germany to IDC$$s AllianceTexas$$

Distribution Center?

Q$3$: Using the exchange rates cited in the case, what is the COST $($in US Dollars

including tariffs and duties$)$ to ship a TEU container from:

a$.$ Dong Hai Supply in Chengdu, China to IDC$$s AllianceTexas$$ Distribution

Center?

b$.$ Staberhofer Supply in Freising, Germany to IDC$$s AllianceTexas$$

Distribution Center?

Q$4$: What is the ECONOMIC ORDER QUANTITY $($use unit price only; do not include

transportation costs when you calculate economic order quantity$)$ if we

purchase everything from:

This document is available from our site and provided for your personal use only and may not be retransmitted or redistribute d without written permission from the

Council of Supply Chain Management Professionals $($CSCMP$).$ You may not upload any of this site$$s material to any public server, online service, network, or bulletin

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A Total Cost Approach to Understanding Supply Chain Risk

$8$

a$.$ Dong Hai Supply in Chengdu, China?

b$.$ CousinsAg in Wahoo, Nebraska?

c$.$ Staberhofer Supply in Freising, Germany?

Q$5$: How many units of SAFETY STOCK will we need to hold if we purchase

everything from:

a$.$ Dong Hai Supply in Chengdu, China?

b$.$ CousinsAg in Wahoo, Nebraska?

c$.$ Staberhofer Supply in Freising, Germany?

Q$6$: Inventory Carrying Costs are based on the value of the product at the time

it is held in inventory. What is the IN$-$TRANSIT CARRYING COST PER UNIT

$($in dollars and cents$)$ if we purchase everything from:

a$.$ Dong Hai Supply in Chengdu, China?

b$.$ CousinsAg in Wahoo, Nebraska?

c$.$ Staberhofer Supply in Freising, Germany?

Q$7$: What AVERAGE INVENTORY LEVEL $($in units; be sure to consider both safety

stock and cycle stock$)$ will we hold at the IDC$$s AllianceTexas$$ Distribution

Center if we purchase everything from:

a$.$ Dong Hai Supply in Chengdu, China?

b$.$ CousinsAg in Wahoo, Nebraska?

c$.$ Staberhofer Supply in Freising, Germany?

Q$8$: Inventory Carrying Costs are based on the value of the product at the time it

is held in inventory. When the product is sitting in the IDC AllianceTexas$$

Distribution Center, its value is a combination of purchase price PLUS any

transportation costs to get it from the supplier to the DC PLUS in$-$transit carrying

This document is available from our site and provided for your personal use only and may not be retransmitted or redistribute d without written permission from the

Council of Supply Chain Management Professionals $($CSCMP$).$ You may not upload any of this site$$s material to any public server, online service, network, or bulletin

board without written permission from CSCMP$.$

A Total Cost Approach to Understanding Supply Chain Risk

$9$

costs. What is the TOTAL ANNUAL INVENTORY CARRYING COST $($in dollars$)$ for

the safety stock and cycle stock inventory held at the AllianceTexas$$ Distribution

Center if we purchase everything from:

a$.$ Dong Hai Supply in Chengdu, China?

b$.$ CousinsAg in Wahoo, Nebraska?

c$.$ Staberhofer Supply in Freising, Germany?

Q$9$: Inventory Carrying Costs are based on the value of the product at the time it is

held in inventory. When the product is sitting at IDC$$s AllianceTexas$$ Distribution

Center, its value is a combination of purchase price PLUS any transportation costs

to get it from the supplier to the DC plus in$-$transit carrying costs. ON A PER$-$UNIT

BASIS $($in dollars$)$ what is the TOTAL ANNUAL INVENTORY CARRYING COST for

the safety stock and cycle stock inventory held at IDC$$s AllianceTexas$$

Distribution Center if we purchase everything from:

a$.$ Dong Hai Supply in Chengdu, China?

b$.$ CousinsAg in Wahoo, Nebraska?

c$.$ Staberhofer Supply in Freising, Germany?

Q$10$: Let$$s put it all together to determine the total cost of ownership. We have

determined the unit price, the in$-$transit carrying cost, the transportation costs,

and the IDC AllianceTexas$$ Distribution Center$$s inventory carrying cost. If we

also consider the Annual Ordering Cost, what is the TOTAL LANDED COST OF

OWNERSHIP PER UNIT $($in dollars$)$ if we purchase everything from:

a$.$ Dong Hai Supply in Chengdu, China?

b$.$ CousinsAg in Wahoo, Nebraska?

c$.$ Staberhofer Supply in Freising, Germany?

This document is available from our site and provided for your personal use only and may not be retransmitted or redistribute d without written permission from the

Council of Supply Chain Management Professionals $($CSCMP$).$ You ma