a company's business model was to operate through its facilities- Vancouver, Calgary, Winnipeg, Toronto(ontario), ottawa, Montreal and Halifax. Supply comes from South America, southeast Asia, and Florida. the company was shipping first to Toronto and then to each facility at a total cost of $23095.5 per week. The company is considering the possibility of opening a logistics facility in Miami. Toronto and Vancouver were already available as transshipment centres. What would be the cost savings if Miami centre was opened and what would be the optimal shipment plan? Shipping Costs (in Canadian dollars per box), Supply, and DemandOntarioFloridaVancouver* Calgary WinnipegOttawaMontreal Halifax| (Toronto)* (Miami)*South America1420n/an/an/an/an/aSoutheast Asia352035n/an/an/an/an/an/aEuropeOntario (Toronto)*Florida (Miami)*301535n/an/an/an/an/a1514133.53.541010107.57.510Vancouver*14n/a78141422Supply (in boxes)1,050Demand (in boxes)South AmericaOntario (Toronto)*381Southeast Asia30Florida (Miami)*EuropeOntario (Toronto)*unlimitedVancouver*191| CalgaryWinnipeg10017164Ottawa127Montreal184Halifax64

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Answered: a company's business model was to…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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a company's business model was to operate through its facilities- Vancouver, Calgary, Winnipeg, Toronto(ontario), ottawa, Montreal and Halifax. Supply comes from South America, southeast Asia, and Florida. the company was shipping first to Toronto and then to each facility at a total cost of $23095.5 per week. The company is considering the possibility of opening a logistics facility in Miami. Toronto and Vancouver were already available as transshipment centres. What would be the cost savings if Miami centre was opened and what would be the optimal shipment plan?

Shipping Costs (in Canadian dollars per box), Supply, and Demand
Ontario
Florida
Vancouver* Calgary Winnipeg
Ottawa
Montreal Halifax
| (Toronto)* (Miami)*
South America
14
20
n/a
n/a
n/a
n/a
n/a
Southeast Asia
35
20
35
n/a
n/a
n/a
n/a
n/a
n/a
Europe
Ontario (Toronto)*
Florida (Miami)*
30
15
35
n/a
n/a
n/a
n/a
n/a
15
14
13
3.5
3.5
4
10
10
10
7.5
7.5
10
Vancouver*
14
n/a
7
8
14
14
22
Supply (in boxes)
1,050
Demand (in boxes)
South America
Ontario (Toronto)*
381
Southeast Asia
30
Florida (Miami)*
Europe
Ontario (Toronto)*
unlimited
Vancouver*
191
| Calgary
Winnipeg
100
171
64
Ottawa
127
Montreal
184
Halifax
64

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