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The company reports that demand is still strong for the custom messenger bags made in San Francisco and that the new laptop bags sourced from China are receiving rave reviews. The additional business is allowing it to hire more people in all departments at the San Francisco headquarters, creating even more jobs locally.
Draw two diagrams, one depicting the supply chain for those products sourced in China and the other depicting the bags produced in San Francisco. Show all the major steps, including raw material, manufacturing, finished goods, distribution inventory, and transportation. Other than manufacturing cost, what other costs should Timbuk consider when making the sourcing decision?
Solution
VerifiedIn this exercise, we are tasked to create the supply chain diagrams for the products produced in China and San Fransisco.
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