Evaluate an alternative that involves consolidating all 20-foot container volumes and using only a single consolidation center in Shanghai/Ningbo. Assume that all the existing 20-foot container volumes and the existing consolidation center volumes are sent to this single consolidation center by suppliers. This new consolidation center volume would be packed into 40-foot containers, filled to 96 percent, and shipped to the United States. The existing 40-foot volume would still be shipped direct from the suppliers at 85 percent capacity utilization.

LO16-2