Question: The information relating to Current and Alternative Transportation will be used to analyze the choice between using Maersk ( Ocean Freight ) and UPS (
The information relating to Current and Alternative Transportation will be used to analyze the choice between using Maersk Ocean Freight and UPS AirExpress Use the forecasted demand you recommended in question
a What are the annual direct transportation costs for each of the two options?
b Based on the information provided in the case, are there other cost impacts eg inventory, quality that Throx should consider when making this decision? Do these outweigh the direct transportation cost differential calculated above? Please quantify any additional costs that you are considering.
c Based on your analysis, which option would you recommend.
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