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Problem 1. (Chapter 1: Business Logistics/Supply Chain-A Vital Subject) Suppose that a manufacturer of men's shirts can produce a dress shirt in its Huston, Texas

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Problem 1. (Chapter 1: Business Logistics/Supply Chain-A Vital Subject) Suppose that a manufacturer of men's shirts can produce a dress shirt in its Huston, Texas plant for $7 per shirt (including the cost of raw materials). Chicago is a major market for 100,000 shirts per year. Transportation and storage charges from Huston to Chicago amount to $4.5 per hundred pounds (per cwt.) Each packaged shirt weighs 1 pound. As an alternative, the company can have the shirts produced in Taiwan for $3 per shirt (including the cost of raw materials). The raw materials, weighing about 1 pound per shirt, would be shipped from Huston to Taiwan at a cost of $1.5 per cwt. When the shirts are completed, they are to be shipped directly to Chicago at a transportation and storage cost of $5 per cwt. An import duty of $0.5 per shirt is assessed. a. From a logistics-production cost standpoint, should the shirts be produced in Taiwan? b. Please name at least three additional considerations, other than economic ones, might be considered before making a final decision

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