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wipes

ointment
variable
plant
fixed costs variable cost/unit capacity fixed cost cost/unit capacity
chicago
5000000
10 2000000 1500000
20 1000000
princeton
2200000
10 2000000 1500000
20 1000000
atlanta
2200000
10 2000000 1500000
20 1000000
los angles 2200000
10 2000000 1500000
20 1000000
regional demand by product
upper
lower
zone
northwest southwest
midwest midwest northeast southeast
wipes
500
700
900
800
1000
600
ointment
50
90
120
65
120
70

northwest southwest
chicago
6.32
princeton
6.6
atlanta
6.72
los angles
4.36

upper
lower
midwest midwest northeast southeast
6.32
3.68
4.04
5.76
5.96
6.6
5.76
5.92
3.68
4.08
6.48
5.92
4.08
4.04
3.64
3.68
6.32
6.32
6.72
6.6

wipes variable
upper
lower
northwest southwest
midwest midwest northeast southeast
chicago
0
0
900
800
0
0
princeton
0
0
0
0
1000
0
atlanta
0
1.78E-15
0 -3.55E-15
0 6.00E+02
los angles
500
700
0
0
0
0
demand
0
4.49E-07 -1.00E-07
0
0
0

ointment variables
upper
lower
northwest southwest
midwest midwest northeast southeast
chicago
0
0
120
65
0
0
princeton
0
0
0
0
120
0
atlanta
0
0.00E+00
0 0.00E+00
0 7.00E+01
los angles
50
90
0
0
0
0
demand
0
0.00E+00 0.00E+00
0
0
0

If build a plant in princeton LA or atlanta the cost would be


reduced to

29188.8

total
4500
515

fixed

capacity
1 33..
0.5 -2.30E-09
0.3 0.00E+00
0.6 1.74E-08

fixed

capacity
1
815
0.12 0.00E+00
0.07 0.00E+00
0.14 0.00E+00

wipes
ointment
variable
variable
plant
fixed costs cost/unit capacity fixed cost cost/unit capacity
chicago
5000000
10 2000000 1500000
20 1000000
princeton
2200000
10 2000000 1500000
20 1000000
atlanta
2200000
10 2000000 1500000
20 1000000
los angles 2200000
10 2000000 1500000
20 1000000
regional demand by product
upper
lower
zone
northwest southwest midwest midwest northeast southeast total
wipes
500
700
900
800
1000
600
4500
ointment
50
90
120
65
120
70
515
transportation costs

upper
lower
northwest southwest midwest midwest northeast southeast
chicago
6.32
6.32
3.68
4.04
5.76
5.96
princeton
6.6
6.6
5.76
5.92
3.68
4.08
atlanta
6.72
6.48
5.92
4.08
4.04
3.64
los angles
4.36
3.68
6.32
6.32
6.72
6.6

wipes variable
upper
lower
northwest southwest midwest midwest northeast southeast fixed
chicago
0
0
900
800
0
0
princeton
0
0
0
0
1000
0
atlanta
0 1.78E-15
0 -3.55E-15
0 6.00E+02
los angles
500
700
0
0
0
0
demand
0 4.49E-07 -1.00E-07
0
0
0

1
0.5
0.3
0.6

ointment variables
upper
lower
northwest southwest midwest midwest northeast southeast fixed
chicago
0
0
120
65
0
0
1
princeton
0
0
0
0
120
0
0.12
atlanta
0 0.00E+00
0 0.00E+00
0 7.00E+01
0.07
los angles
50
90
0
0
0
0
0.14
demand
0 0.00E+00 0.00E+00
0
0
0

If the transportation costs are to be halved the


be

transporta
tion cost
multiple
0.5

capacity
33..
-2.30E-09
0.00E+00
1.74E-08

capacity
815
0.00E+00
0.00E+00
0.00E+00

osts are to be halved the total cost would


be
16947880

wipes
ointment
variable
variable
plant
fixed costs cost/unit capacity fixed cost cost/unit capacity
chicago
5000000
10 2000000 1500000
20 1000000
princeton
2200000
10 2000000 1500000
20 1000000
atlanta
2200000
10 2000000 1500000
20 1000000
los angles 2200000
10 2000000 1500000
20 1000000
regional demand by product
upper
lower
zone
northwest southwest midwest midwest northeast southeast total
wipes
500
700
900
800
1000
600
4500
ointment
50
90
120
65
120
70
515
transportation costs

upper
lower
northwest southwest midwest midwest northeast southeast
chicago
6.32
6.32
3.68
4.04
5.76
5.96
princeton
6.6
6.6
5.76
5.92
3.68
4.08
atlanta
6.72
6.48
5.92
4.08
4.04
3.64
los angles
4.36
3.68
6.32
6.32
6.72
6.6

wipes variable
upper
lower
northwest southwest midwest midwest northeast southeast fixed
chicago
0
0
900
800
0
0
princeton
0
0
0
0
1000
0
atlanta
0 1.78E-15
0 -3.55E-15
0 6.00E+02
los angles
500
700
0
0
0
0
demand
0 4.49E-07 -1.00E-07
0
0
0

1
0.5
0.3
0.6

ointment variables
upper
lower
northwest southwest midwest midwest northeast southeast fixed
chicago
0
0
120
65
0
0
1
princeton
0
0
0
0
120
0
0.12
atlanta
0 0.00E+00
0 0.00E+00
0 7.00E+01
0.07
los angles
50
90
0
0
0
0
0.14
demand
0 0.00E+00 0.00E+00
0
0
0

If the transportation costs were doubled it would be better to keep chicago alone as

transporta
tion cost
multiple
2

capacity
33..
-2.30E-09
0.00E+00
1.74E-08

capacity
815
0.00E+00
0.00E+00
0.00E+00

to keep chicago alone as plant cost would be

86530200

FR0259
FQ8123

- If vice president could design a new network from scratch, the ideal network would be c
the upper midwest and northeast regions.
- The three cities are at equal distance from eachother, so each plant can work effectively

FR0259
FQ8123

deal network would be chicago-princeton-atlanta as the demands are the highest in

plant can work effectively with eachother and thus decrease transportation costs.

wipes
ointment
variable
variable
plant
fixed costs cost/unit capacity fixed cost cost/unit capacity
chicago
5000000
10 2000000 1500000
20 1000000
princeton
2200000
10 2000000 1500000
20 1000000
atlanta
2200000
10 2000000 1500000
20 1000000
los angles 2200000
10 2000000 1500000
20 1000000
regional demand by product
upper
lower
zone
northwest southwest midwest midwest northeast southeast total
wipes
500
700
900
800
1000
600
4500
ointment
50
90
120
65
120
70
515
transportation costs

upper
lower
northwest southwest midwest midwest northeast southeast
chicago
6.32
6.32
3.68
4.04
5.76
5.96
princeton
6.6
6.6
5.76
5.92
3.68
4.08
atlanta
6.72
6.48
5.92
4.08
4.04
3.64
los angles
4.36
3.68
6.32
6.32
6.72
6.6

wipes variable
upper
lower
northwest southwest midwest midwest northeast southeast fixed
chicago
0
0
900
800
0
0
princeton
0
0
0
0
1000
0
atlanta
0 1.78E-15
0 -3.55E-15
0 6.00E+02
los angles
500
700
0
0
0
0
demand
0 4.49E-07 -1.00E-07
0
0
0

1
0.5
0.3
0.6

ointment variables
upper
lower
northwest southwest midwest midwest northeast southeast fixed
chicago
0
0
120
65
0
0
1
princeton
0
0
0
0
120
0
0.12
atlanta
0 0.00E+00
0 0.00E+00
0 7.00E+01
0.07
los angles
50
90
0
0
0
0
0.14
demand
0 0.00E+00 0.00E+00
0
0
0

If the transportation costs are to be half their c


total annual cost would be

transporta
tion cost
multiple
0.5

capacity
33..
-2.30E-09
0.00E+00
1.74E-08

capacity
815
0.00E+00
0.00E+00
0.00E+00

osts are to be half their current value the


l annual cost would be
11948860

wipes
ointment
variable
variable
plant
fixed costs cost/unit capacity fixed cost cost/unit capacity
chicago
5000000
10 2000000 1500000
20 1000000
princeton
2200000
10 2000000 1500000
20 1000000
atlanta
2200000
10 2000000 1500000
20 1000000
los angles 2200000
10 2000000 1500000
20 1000000
regional demand by product
upper
lower
zone
northwest southwest midwest midwest northeast southeast total
wipes
500
700
900
800
1000
600
4500
ointment
50
90
120
65
120
70
515
transportation costs

upper
lower
northwest southwest midwest midwest northeast southeast
chicago
6.32
6.32
3.68
4.04
5.76
5.96
princeton
6.6
6.6
5.76
5.92
3.68
4.08
atlanta
6.72
6.48
5.92
4.08
4.04
3.64
los angles
4.36
3.68
6.32
6.32
6.72
6.6

wipes variable
upper
lower
northwest southwest midwest midwest northeast southeast fixed
chicago
0
0
900
800
0
0
princeton
0
0
0
0
1000
0
atlanta
0 1.78E-15
0 -3.55E-15
0 6.00E+02
los angles
500
700
0
0
0
0
demand
0 4.49E-07 -1.00E-07
0
0
0

1
0.5
0.3
0.6

ointment variables
upper
lower
northwest southwest midwest midwest northeast southeast fixed
chicago
0
0
120
65
0
0
1
princeton
0
0
0
0
120
0
0.12
atlanta
0 0.00E+00
0 0.00E+00
0 7.00E+01
0.07
los angles
50
90
0
0
0
0
0.14
demand
0 0.00E+00 0.00E+00
0
0
0

If the transportation costs were double their current value the annual productio

transporta
tion cost
multiple
2

capacity
33..
-2.30E-09
0.00E+00
1.74E-08

capacity
815
0.00E+00
0.00E+00
0.00E+00

alue the annual production cost would be

82007700

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