Perry P. (the logistics manager for the Company PTP) is woken bya phone call in the middle of the night because one of the shipscarrying 5 containers of light bulbs just sank after hitting someice in the northern pacific ocean. The crew made it out alive inthe new unsinkable life boats, and have been picked up by the CoastGuard. Talk about the risks that this points out. Talk about costsinvolved and by whom and how they are incurred. What kinds ofreaction plans would you try to put in place after the fact, andwhat strategies would have helped before?
Value of inventory in a container= $500,000 =1,000,000lightbulbs
5 containers per ship,
30 days of supply transit time.
Factory has 900 workers a day, at an average wage of $25 anhour.
