After we make our initial sourcing decision based on the lowest total (landed) cost, we get hit with unexpected supply chain disruption which clogs the port of Long Beach and delays shipments adding 89 days to receive a shipment from our Chengdu supplier as cargo ships "drift" in San Pedro Bay waiting to unload. If we shift from ocean shipping to air, flying from Shanghai to DFW, we can bypass the port congestion, but at a much higher cost. Doing so will speed the shipment to 1 day loading in Shanghai, 2 days air shipping, and 1 day to clear customers at AFW and deliver from the Alliance airfield to our warehouse; but at a cost 17 times that of ocean shipping for the same volume of freight. 

A. How does this change your sourcing decision in terms of: a. Dong Hai Supply in Chengdu, China? b. CousinsAg in Wahoo, Nebraska? c. Staberhofer Supply in Freising, Germany? B. AT WHAT ADDITIONAL COST? 

 

Q13: After considering the new information contained in Q12, based on LOWEST TOTAL LANDED COST should we "near-source" or should we shift to air for shipments from Chengdu supplier? WHAT IS THE LOWEST TOTAL LANDED COST?