Operation management An international company in healthcare industry is currently serving the European market from three existing factories inDusseldorf, Amsterdam, and The Hauge. Due to the huge growth in demand in recent years and analyzing the marketgrowth in next years, the leadership team of the company is willing to add an additional plant in Geneva or Budapest.One of the main criteria for this decision is the transportation cost. The following Table shows the transportation cost perunit product from factories to the consumer markets in Brussels, Paris, Lisbon, and Zurich.FromToBrussel LisbonSAmsterdam 20Dusseldorf 17The Hauge21Budapest 37Geneva22Demand350Show Transcribed Text2527202830450Paris2225221921850Rome2930302518600Vienna2419163027450Zurich1915231421300Supplycapacity1100850550500500a) The company should establish the new factory in Budapest or Geneva? Why?(b) Due to new forecast updates, company expects 20% lower total demand. Will the result of part (a) be different?

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Answered: An international company in healthcare…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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