Question #$2.$

The ABC Tool company is considering the best manufacturing location decision for manufacturing their range of PowerDrills. The $3$ options are to manufacture in the USA $($current scenario$),$ outsource manufacturing to either China or India.

The cost to manufacture the product in the USA location $($including all overhead costs$)$ is $$50$ per unit, whereas the same cost for the China and India locations are $$33$ per unit and $$30$ per unit respectively.

A container can hold $1000$ units and it costs $$10,000$ to ship a container from China to USA and $$11,200$ to ship a container from India to USA. Additional inventory carrying costs incurred on account of the China and India locations are $$1$ and $$1\mathrm{.}35$ per unit respectively. Additional logistics costs $($on account of customs duties and related delays$)$ are $$2$ and $$2\mathrm{.}5$ for the China and India locations respectively.

Determine the best $($lowest cost$)$ location to manufacture the PowerDrill product line.