Hi guys, I’ve got this task im working on, and I need some help with transferring this worded question into a spreadsheet and figuring it out, I’m a bit useless when it comes to excel and I’m trying to learn. If anybody is decent with this kind of stuff please lend a hand!
You are currently working as logistics manager for a manufacturing company based in Melbourne. Your company has a new customer in France and your CEO asks you to advise the optimal logistics solution for a shipment with the value of $5,000 per ton to be shipped from Melbourne, Australia to Le Havre, France. The inventory carrying cost of this shipment is 20% of its value per year. The followings are some other transport details: • Direct sea transport between Melbourne to Le Havre takes about 30 days and at about $150 per ton.Direct air transport on this route takes about 3 days and at the cost of $3,000 per ton. • You may also consider transhipment at Dubai Port (for sea transport) and Dubai Airport (for air transport).In this case: o Sea transport between Melbourne and Dubai is about 60% of the time between Melbourne and Le Havre and costs $120 per ton while air transport would take about 2 days at about $1,500 per ton. o Sea transport between Dubai and Le Havre is about 10 days and costs $80 per ton whileair transport on this route would take about 1 day at about $1,000 per ton. o It is known that the shipment has to stay 2 days at Dubai Port and 1 day at Dubai Airport before being loaded on board the new vessel or airplane if the transhipment method is used. Question 1: What would be your advice to the CEO regarding the optimal logistics solution?
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