Asian Port Congestion May Take 10 Months to Clear

What if Asian port clearing takes the full 10 months as projected?

Simulate a scenario where Asian ocean freight transit times increase by 3-4 weeks and remain elevated for the next 10 months. Adjust service level targets to accommodate delayed arrival dates, recalculate safety stock levels for affected suppliers, and model the impact on inventory carrying costs and working capital. Evaluate whether demand planning cycles need to shift to longer lead times.

What if you increase safety stock by 25 percent to buffer extended transit times?

Simulate an inventory policy change that increases safety stock levels by 25 percent for SKUs sourced from Asia. Model the impact on carrying costs, warehouse capacity requirements, and working capital. Compare the cost of additional inventory against the cost of potential stockouts and expedited shipping. Analyze which product categories and suppliers warrant this higher investment.

What if you shift 15 percent of Asian sourcing to alternative suppliers outside congested hubs?

Model a diversification strategy where 15 percent of volume currently routed through congested Asian ports is sourced from alternative suppliers in different regions (Southeast Asia, India, Mexico). Compare total cost of ownership including higher unit costs against savings in reduced congestion fees, faster transit, and lower inventory carrying costs. Evaluate supply chain risk reduction.