Sunday, December 23, 2018

'Global Logistics Management Essay\r'

'Suppose that a shaper of men’s shirts can ca-ca a dress shirt in its Houston, Texas plant for $8 per shirt (including the constitute of raw materials). wampum is a study market for 100,000 shirts per year. The shirt is priced at $15 at the Houston plant. Transportation and storage charges from Houston to Chicago amount to $5 per hundredweight (cwt.). each(prenominal) packaged shirt weighs 1 pound.\r\nAs an alternative, the company can have the shirts produced in mainland China for $4 per shirt (including the monetary value of raw materials). The raw materials, weighing around 1 pound per shirt, would be shipped from Houston to Taiwan at a make up of $2 per cwt. When the shirts are completed, they are to be shipped instantaneously to Chicago at a point and storage cost of $6 per cwt. An meaning duty of $0.50 per shirt is assessed.\r\na. From a logistics-production cost standpoint, should the shirts be produced in Taiwan? b. What additive considerations, other than economic ones, might be considered before making a net decision?\r\n'

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