供应链管理英文原书第6版Coolwipes Case.docVIP

CoolWipes

ThetotalcosttoservetheentirenationfromChicagois$32,661.40asillustratedbelow:

Baseduponareductionintotalcoststo$31,025,wewouldrecommendbuildingnewplantsinPrincetonandLAforWipes.AllointmentwouldcontinuetobeproducedinChicago.Theproductionquantitiesatvariousplantsareasoutlinedbelow:

Ifthetransportationcostswerehalftheircurrentamount,itwouldbeoptimaltomaintainonlytheChicagoplant.ThetotalcostofservingallmarketsfromChicagowoulddeclineto$13,040asillustratedbelow:

Iftransportationcostsweredoubletheircurrentlevels,therecommendationwouldbetobuildnewplantsforwipesatPrincetonandLAandanewplantforointmentatPrinceton.Thetotalcostwouldriseto$91,377andthemarketsservedbyvariousplantswouldbeasshownbelow:

Asillustratedbelowinthethreespreadsheets,therecommendationschangeifwedonotrequirethattheChicagoplantstayopen.Iftransportationcostisasstatedinthecase,itisoptimaltohavenoplantinChicago.TheoptimalnetworkhaswipesplantsinPrinceton,Atlanta,andLAandoneointmentplantinAtlanta.Thetotalcostof$29,802islessthanthecostwhenwerequiretheChicagoplanttostayopen.

Ifthetransportationcostsarehalf,itisoptimaltoservetheentirenationwithwipesfromtheChicagoplant.Forointment,itisoptimaltobuildaplantinAtlantaasshownbelow.Thetotalcostof$13,025islessthanthecostwhentheChicagoplantmuststayopen.

Iftransportationcostsweredoubletheircurrentlevel,theoptimalnetworkforWipeswouldhaveplantsinChicago,Princeton,andLA.Theoptimalnetworkforointment,however,wouldhaveaplantonlyinAtlanta.Themarketsservedareasshownbelow.Thetotalcostof$91,150islessthanthetotalcostinthecasewherewerequiretheChicagoplanttoremainopen.