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Case Study 3. cool wipes excel sheet

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wipes ointment

plant fixed costs variable cost/unit capacity fixed cost 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

zone northwest southwest northeast southeast

wipes 500 700 900 800 1000 600

ointment 50 90 120 65 120 70

northwest southwest 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

northwest southwest 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

northwest southwest 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

variable cost/unit

upper

midwest lower midwest

upper

midwest lower midwest

upper

midwest lower midwest

upper

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29188.8 If build a plant in princeton LA or atlanta the cost would be

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regional demand by product total 4500 515 wipes variable fixed capacity 1 33.. 0.5 -2.30E-09 0.3 0.00E+00 0.6 1.74E-08 ointment variables fixed capacity 1 815 0.12 0.00E+00 0.07 0.00E+00 0.14 0.00E+00

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wipes ointment

plant fixed costs capacity fixed cost 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

zone northwest southwest northeast southeast total

wipes 500 700 900 800 1000 600 4500

ointment 50 90 120 65 120 70 515

transportation costs

northwest southwest 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

northwest southwest northeast southeast fixed

chicago 0 0 900 800 0 0 1

princeton 0 0 0 0 1000 0 0.5

atlanta 0 1.78E-15 0 -3.55E-15 0 6.00E+02 0.3

los angles 500 700 0 0 0 0 0.6

demand 0 4.49E-07 -1.00E-07 0 0 0

ointment variables

northwest southwest 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

variable

cost/unit variable cost/unit

upper

midwest lower midwest

upper

midwest lower midwest

upper

midwest lower midwest

upper midwest

lower midwest

If the transportation costs are to be halved the total cost would be

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0.5 wipes variable capacity 33.. -2.30E-09 0.00E+00 1.74E-08 ointment variables capacity 815 0.00E+00 0.00E+00 0.00E+00 16947880 transporta tion cost multiple

If the transportation costs are to be halved the total cost would be

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wipes ointment

plant fixed costs capacity fixed cost 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

zone northwest southwest northeast southeast total

wipes 500 700 900 800 1000 600 4500

ointment 50 90 120 65 120 70 515

transportation costs

northwest southwest 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

northwest southwest northeast southeast fixed

chicago 0 0 900 800 0 0 1

princeton 0 0 0 0 1000 0 0.5

atlanta 0 1.78E-15 0 -3.55E-15 0 6.00E+02 0.3

los angles 500 700 0 0 0 0 0.6

demand 0 4.49E-07 -1.00E-07 0 0 0

ointment variables

northwest southwest 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 plant cost would be variable

cost/unit variable cost/unit

upper

midwest lower midwest

upper

midwest lower midwest

upper

midwest lower midwest

upper midwest

lower midwest

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2 wipes variable capacity 33.. -2.30E-09 0.00E+00 1.74E-08 ointment variables capacity 815 0.00E+00 0.00E+00 0.00E+00

If the transportation costs were doubled it would be better to keep chicago alone as plant cost would be 86530200 transporta

tion cost multiple

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FR0259 FQ8123

- If vice president could design a new network from scratch, the ideal network would be chicago-princeton-atlanta as the demands are the highest in the upper midwest and northeast regions.

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FR0259 FQ8123

- If vice president could design a new network from scratch, the ideal network would be chicago-princeton-atlanta as the demands are the highest in the upper midwest and northeast regions.

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wipes ointment

plant fixed costs capacity fixed cost 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

zone northwest southwest northeast southeast total

wipes 500 700 900 800 1000 600 4500

ointment 50 90 120 65 120 70 515

transportation costs

northwest southwest 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

northwest southwest northeast southeast fixed

chicago 0 0 900 800 0 0 1

princeton 0 0 0 0 1000 0 0.5

atlanta 0 1.78E-15 0 -3.55E-15 0 6.00E+02 0.3

los angles 500 700 0 0 0 0 0.6

demand 0 4.49E-07 -1.00E-07 0 0 0

ointment variables

northwest southwest 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

variable

cost/unit variable cost/unit

upper

midwest lower midwest

upper

midwest lower midwest

upper

midwest lower midwest

upper midwest

lower midwest

If the transportation costs are to be half their current value the total annual cost would be

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0.5 wipes variable capacity 33.. -2.30E-09 0.00E+00 1.74E-08 ointment variables capacity 815 0.00E+00 0.00E+00 0.00E+00 11948860 transporta tion cost multiple

If the transportation costs are to be half their current value the total annual cost would be

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wipes ointment

plant fixed costs capacity fixed cost 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

zone northwest southwest northeast southeast total

wipes 500 700 900 800 1000 600 4500

ointment 50 90 120 65 120 70 515

transportation costs

northwest southwest 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

northwest southwest northeast southeast fixed

chicago 0 0 900 800 0 0 1

princeton 0 0 0 0 1000 0 0.5

atlanta 0 1.78E-15 0 -3.55E-15 0 6.00E+02 0.3

los angles 500 700 0 0 0 0 0.6

demand 0 4.49E-07 -1.00E-07 0 0 0

ointment variables

northwest southwest 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 production cost would be variable

cost/unit variable cost/unit

upper

midwest lower midwest

upper

midwest lower midwest

upper

midwest lower midwest

upper midwest

lower midwest

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2 wipes variable capacity 33.. -2.30E-09 0.00E+00 1.74E-08 ointment variables capacity 815 0.00E+00 0.00E+00 0.00E+00

If the transportation costs were double their current value the annual production cost would be 82007700 transporta

tion cost multiple

References

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