The analysis provided that the cost of using the air based transportation option and the ocean based transportation options are only equal when the quantity demanded and to be shipped is 714,286 pounds per year. However this value is much lower than the current demand of 1.5 million and therefore cannot be aimed for.
The most suitable transportation option that is cost effective and efficient for the company is to transport the electronic products through the ocean because the bulk weight of the demand is high in the following years and the cost associated with using the air transportation system to transport the products from China to the United States is very high at $730,080 for the fifth year. This much higher than the cost associated with transporting though the ocean for the same period which stands at $587,156. Air transportation has less customer waiting time but the total cost of transportation associated with using the air medium is more expensive that using the ocean medium which clearly depicts that the ocean medium is more effective, efficient and profitable choice for the company in the long run. In the long term the profitably of using both the options can become similar, however as the forecasts show for the next five years at least it would be much more profitable and much less expensive for the company to use the ocean based system instead of the air based for transportation
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