Q1: Using the exchange rates cited in the case, what is the INITIAL PURCHASE C

 Q1: Using the exchange rates cited in the case, what is the INITIAL PURCHASE COST  PER UNIT (in US Dollars; do not include transportation costs) paid to: a. Dong Hai Supply in Chengdu, China?  b. CousinsAg in Wahoo, Nebraska? c. Staberhofer Supply in Freising, Germany?
 Q2: What is the AVERAGE TIME for an order filling a TEU container to come from: a. Dong Hai Supply in Chengdu, China to IDC’s AllianceTexas® Distribution  Center?  b. CousinsAg in Wahoo, Nebraska to IDC’s AllianceTexas® Distribution Center? c. Staberhofer Supply in Freising, Germany to IDC’s AllianceTexas® Distribution Center? 
Q3: Using the exchange rates cited in the case, what is the COST (in US Dollars  including tariffs and duties) to ship a TEU container from: a. Dong Hai Supply in Chengdu, China to IDC’s AllianceTexas® Distribution  Center?  b. Staberhofer Supply in Freising, Germany to IDC’s AllianceTexas® Distribution Center? 
Q4: What is the ECONOMIC ORDER QUANTITY (use unit price only; do not include  transportation costs when you calculate economic order quantity) if we purchase everything from: This document is available from our site and provided for your personal use only and may not be retransmitted or redistribute d without written permission from the  Council of Supply Chain Management Professionals (CSCMP). You may not upload any of this site’s material to any public server, online service, network, or bulletin  board without written permission from CSCMP. A Total Cost Approach to Understanding Supply Chain Risk 8 a. Dong Hai Supply in Chengdu, China?  b. CousinsAg in Wahoo, Nebraska? c. Staberhofer Supply in Freising, Germany? 
Q5: How many units of SAFETY STOCK will we need to hold if we purchase everything from: a. Dong Hai Supply in Chengdu, China?  b. CousinsAg in Wahoo, Nebraska? c. Staberhofer Supply in Freising, Germany? 
Q6: Inventory Carrying Costs are based on the value of the product at the time it is held in inventory. What is the IN-TRANSIT CARRYING COST PER UNIT (in dollars and cents) if we purchase everything from: a. Dong Hai Supply in Chengdu, China?  b. CousinsAg in Wahoo, Nebraska? c. Staberhofer Supply in Freising, Germany? 
Q7: What AVERAGE INVENTORY LEVEL (in units; be sure to consider both safety stock and cycle stock) will we hold at the IDC’s AllianceTexas® Distribution Center if we purchase everything from: a. Dong Hai Supply in Chengdu, China?  b. CousinsAg in Wahoo, Nebraska? c. Staberhofer Supply in Freising, Germany? 
Q8: Inventory Carrying Costs are based on the value of the product at the time it is held in inventory. When the product is sitting in the IDC AllianceTexas®  Distribution Center, its value is a combination of purchase price PLUS any  transportation costs to get it from the supplier to the DC PLUS in-transit carrying  This document is available from our site and provided for your personal use only and may not be retransmitted or redistribute d without written permission from the  Council of Supply Chain Management Professionals (CSCMP). You may not upload any of this site’s material to any public server, online service, network, or bulletin  board without written permission from CSCMP. A Total Cost Approach to Understanding Supply Chain Risk 9 costs. What is the TOTAL ANNUAL INVENTORY CARRYING COST (in dollars) for  the safety stock and cycle stock inventory held at the AllianceTexas® Distribution  Center if we purchase everything from: a. Dong Hai Supply in Chengdu, China?  b. CousinsAg in Wahoo, Nebraska? c. Staberhofer Supply in Freising, Germany? 
Q9: Inventory Carrying Costs are based on the value of the product at the time it is  held in inventory. When the product is sitting at IDC’s AllianceTexas® Distribution  Center, its value is a combination of purchase price PLUS any transportation costs  to get it from the supplier to the DC plus in-transit carrying costs. ON A PER-UNIT  BASIS (in dollars) what is the TOTAL ANNUAL INVENTORY CARRYING COST for  the safety stock and cycle stock inventory held at IDC’s AllianceTexas®  Distribution Center if we purchase everything from: a. Dong Hai Supply in Chengdu, China?  b. CousinsAg in Wahoo, Nebraska? c. Staberhofer Supply in Freising, Germany? 
Q10: Let’s put it all together to determine the total cost of ownership. We have  determined the unit price, the in-transit carrying cost, the transportation costs,  and the IDC AllianceTexas® Distribution Center’s inventory carrying cost. If we  also consider the Annual Ordering Cost, what is the TOTAL LANDED COST OF  OWNERSHIP PER UNIT (in dollars) if we purchase everything from: a. Dong Hai Supply in Chengdu, China?  b. CousinsAg in Wahoo, Nebraska? c. Staberhofer Supply in Freising, Germany? This document is available from our site and provided for your personal use only and may not be retransmitted or redistribute d without written permission from the  Council of Supply Chain Management Professionals (CSCMP). You may not upload any of this site’s material to any public server, online service, network, or bulletin  board without written permission from CSCMP. A Total Cost Approach to Understanding Supply Chain Risk 10 
Q11: If we change our strategy to “near-sourcing,” ANNUALLY WHAT IS THE  ADDITIONAL COST OF NEAR-SOURCING? 
Q12: 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?
 
There is a typo in the case study on page 4.
CousinsAg’s price is $8.25 per unit – Incorrect
CousinsAg’s price is $82.5 per unit – Correct
You will want to reference calculations in the Chapter 4 and Fixed Distribution Course Discussion Decks
You will want to reference the Incoterms chart in the Fixed Distribution Course Discussion Deck.