At the pre assessment stage based on the annual cost of transportation through ocean set at $520,000 and the cost of transporting though the air being $586,000, it can be provided that most cost efficient system available to the company is that of ocean transportation for transferring products from China to the United States.However before a final decision can be made on the selection of an alternative a long term analysis of the different transportation options available should be conducted. The sea based transportation as well as the air based transportation systems were analyzed in terms of the projected growth of demand for the products in the following years. Currently the demand for the products stands at 1.5 million pounds on an annual basis; however in the future the demand is to increase by 10 percent every year. The forecasted demand for the products in the next five year is expected to be at 1,650,000 pounds for the first year, 1,815,000 pounds for the second year, 1,996,500 for the third year, 2,196,150 for the fourth year and 2,415,765 for the fifth year. These forecasts were taken into consideration in the projected cost analysis for the next five years.
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