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\begin{tabular}{|c|cccc|c|} A & B & C & D & E & F \\ \hline 1 & Selecting Transportation Modes for China Imports \end{tabular} Jackie Chen, vice president of China Imports, was looking to design a framework to select transportation modes for various products imported from China to the United States. His basic options were to either use air freight or ocean shipping in 20 -foot containers. Air freight was faster and more reliable, but ocean shipping was much cheaper. He decided to evaluate the shipping decision for two very different product categories - consumer electronics, such as smartphones, and decorative hardware, such as door handles and hinges. China Imports provided a variety of products to its customers from a warehouse near the port of Long Beach, California. The company incurred an annual holding cost of 20 percent on all inventory held and aimed to provide a 97 percent cycle service level on its products. The high level of service aligned with the high quality of products that the company imported. Air freight and ocean shipping were the two options available to move product from China to the United States. Air freight charged 13.60 per kilogram shipped and required a minimum shipment of 67kg. Besides being fast, air freight was also quite reliable. The average lead time on air freight was one week, with a standard deviation of lead time of 0.1 weeks. Ocean shipping was much cheaper and cost 1360 per 20 -foot container. Given that each container could hold up to 15,000kg, the shipping cost per kilo by ocean was more 1 than a hundred times cheaper than air freight. Ocean shipping, however, took longer and was less reliable. The average lead time using ocean shipping was nine weeks, with a standard deviation of two weeks