Drylce, Inc. is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the year 2021 to be 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 in the West. Managers at Drylce are designing the manufacturing network and have selected four potential sites -- New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown below, along with the cost of producing and shipping an air conditioner to each of the four markets. Selling price is $300 per unit. Table 1. Fixed cost, production, and shipping cost New York Atlanta Chicago San Diego $6 million $ 5.5 million $ 5.6 million $6.1 million Annual fixed cost of 200,000 units $ 10 million $ 9.2 million $ 9.3 million $ 10.2 million Annual fixed cost of 400,000 units East $ 211 $ 232 $ 238 $ 299 South $ 232 $ 212 $ 230 $ 280 Midwest $ 240 $ 230 $ 215 $ 270 West $ 300 $ 280 $ 270 $ 225
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
1. Prepare the distribution
2.How much profit will be generated?
3.How many units shall be produced in the New York plant?
4.What type of facility is the best option?
5.What is the total revenue?
6.How many units must be produced by the Atlanta plant?
7.How much will be the total cost incurred by the San Diego plant?
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