Question
A store in Mexico it is used to import all their clothes from the factory in china. It has two possible logistics for the 100,000
A store in Mexico it is used to import all their clothes from the factory in china. It has two possible logistics for the 100,000 boxes that imports into Mexico every year:
1. Air freight, boxes of around 200 pieces and cost of the product of us$2,000 per box. The fright cost is us$25/box , all arrangements and transit time takes 7 days, plus one day trucking LTL from the airport to the warehouse costing mx$250/box. Exchange rate 19.50mxp/1usd.
2. Marine freight 40'HC Container, one container can carry 100 boxes, same as the ones that can be shipped by air, the freight rate is us$1,800/40'HC, the transit time is 25 days and final mile truck costs mx$4,500/container, one day transit time. Exchange rate 19.50mxp/1usd. The inventory carrying cost is 60%, it means everyday counts. Please calculate the best possible total cost of import for the 100,000 boxes per year. Roundup your answer in usd.
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