International logistic

Abstract

The business case subject of this project is the international trade of a Canadian product in a way to reduce the cost of the logistic system. The goal of the paper is to provide the highest profit per unit of investment. This project consists of an investment which results in spending money either by paying to the suppliers or the cost of the logistic system (Transportation – Inventories). That being said, the analysis should be based on a strategy to control the risk. Creating the logistic system and analyzing it from suppliers to customers in addition to choosing the product and the locations either for the manufactures or the target market are important deliverables of the project. This paper can be used as a guide for international trade. It studies the entire steps necessary to trade a product internationally, from the selection of the product to the assembling of the logistic system and from the Supply/demand concept to the logistic cost calculation. The paper shows how to calculate the cost per item including transportation cost. Also, it shows how to predict the quantity demanded to see if the project breakeven.