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October 2, 2014

October 2, 2014

Posted by **sam** on Friday, November 8, 2013 at 8:05am.

As an alternative, the company can have the shirts produced in Taiwan for $4 per shirt (including the cost of raw materials). The raw materials, weighing about 1 lb. per shirt, would be shipped from Houston to Taiwan at a cost of $2 per cwt. When the shirts are completed, they are to be shipped directly to Chicago at transportation and storage cost of $6 per cwt. An import duty of $0.50 per shirt is assessed.

a. From a logistics-production cost standpoint, should the shirts be produced in Taiwan?

b. What additional considerations, other than economic ones, might be considered be¬fore making a final decision?

- supply chain -
**Writeacher**, Friday, November 8, 2013 at 10:58amRe b -- How many US workers would lose their jobs if option b is chosen?

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