So the answer for the question is the option is option C. I would like to know the steps and why is the option C.

Thanks.

Shipping Shoes Part 1. How should I ship my shoes from Shenzhen to Kansas City? . General Information Transportation Options Shoes are manufactured, labeled, and Inland Origin: Shenzhen to Ports ($/container) packed at plant Yantian ($35, 2 day) Demand N(4.5M, 0.54M) annual demand Hong Kong ($30, 5 days) 3,000 shoe boxes fit into one TEU. Port to Port: China to US ($/container) Average cost-$35 per pair CSCL (AAC) Yantian to POLA (51100, 20 days) Average sales price $75 per pair CSAL. (AAS) Hong Kong to POLA ($1025, 13 days) Order for shipment cost $5000 per order APL Hong Kong to New York ($1200, 29 days) Holding costs are 15% Destination Port: US Ports ($/container) Assume 50 weeks/year, 350 days/year POLA (5 days) Assume CSL 95% New York / New Jersey (3 days) Inland Destination: To Kansas City ($/container) POLA to KC by BNSF ($1100, 11 days) PANYNJ to KC by NS (5800, 5 days) PANYNU TO KC By HJBT Truckload ($1150, 2 days) . - CTLSCE Supply Cars and Logo Fundamental Fundamentals of Freght Transportation 31 Shipping Shoes Part 1 - Solution What do we know? - D = 4,500,000 pairs of shoes Cshoes = $35 per pair h = 0.15 $/$/year Assume we ship full containers, how many? Container capacity = 3,000 pairs/container 4,500,000/3,000 = 1,500 containers/year Which path has lowest transportation cost/container? CTLSCE - Spy Can and Logistics Fundamental Lesson Fundamentals of Freight Transportation 32 Shipping Shoes Part 1. . Values on arcs are cost per container $1100, 20 d $35, 2d LA $1100, 118 5d hN $800 Sd $30,5 d $1025, 130 HK NY $1150, 20 $1200, 29 d 3d (1) Y-LA-KC $2235, 38 d (2) HK-LA-KC $2155, 34 d (3) HK-NY-Ir-KC 52030,42 19 HK-NY-t-KC $2380, 39 d Lowest transportation.cost path is (3) $2030 /container = $0.677 /pair of shoes CTLSCE Supply Chain and Lois Fundamentale Unsson Fundamentals of Freight Transportation 33 Part 1 O points possible ungraded) Suppose that BNSF railroad decreased its rate from POLA to Kansas City from $1100 per container to $900 per container. Which path would become the lowest transportation cost path? A. Path 1 Yantian to Port of Los Angeles to Kansas City 8. Path 2 Hong Kong to Port of Los Angeles to Kansas City C. Path 3 Hong Kong to Port of New York to Kansas City by rait D. Path 4 Hong Kong to Port of New York to Kansas City by truck E. None of the above. Submit You have 1 of 3 attempts Save Show