Operations and Supply Chain Management 14th Edition by Robert Jacobs,Richard Chase

Exercise 2

Evaluate an alternative that involves consolidating all 20-foot volume and using only a single consolidation center in Shanghai/Ningbo. Assume that all the existing 20-foot volume and the existing consolidation center volume is sent to this single consolidation center by suppliers. This new consolidation center volume would be packed into 40-foot containers filled to 96 percent and shipped to the United States. The existing 40-foot volume would still be shipped direct from the suppliers at 85 percent capacity utilization.