### Cost Analysis for Production and Shipping#### Labor Costs and Production Output1. **Myanmar:** - Number of laborers: 5 - Daily wage per laborer: $3.50 - Total daily labor cost: $5 \times 3.50 = $17.50$ - Daily production: 40 units 2. **China:** - Number of laborers: 9 - Daily wage per laborer: $2.25 - Total daily labor cost: $9 \times 2.25 = $20.25$ - Daily production: 45 units3. **Billings, Montana:** - Number of laborers: 4 - Daily wage per laborer: $57.00 - Total daily labor cost: $4 \times 57.00 = $228.00$ - Daily production: 105 units#### Shipping Costs- **Myanmar to Denver, Colorado:** $1.75 per unit- **China to Denver, Colorado:** $1.20 per unit- **Billings, Montana to Denver, Colorado:** $0.20 per unit#### Determining the Most Economical Production LocationTo determine the most economical location to produce the item, calculate the total cost (labor and transportation) per unit for each location:1. **Myanmar:** - Labor cost per unit: $ \frac{17.50}{40} = $0.44 $ - Total cost per unit: $ 0.44 + 1.75 = $2.19 $2. **China:** - Labor cost per unit: $ \frac{20.25}{45} = $0.45 $ - Total cost per unit: $ 0.45 + 1.20 = $1.65 $3. **Billings, Montana:** - Labor cost per unit: $ \frac{228.00}{105} = $2.17 $ - Total cost per unit: $ 2.17 + 0.20 = $2.37 $#### ConclusionBased on total costs (labor and transportation) per unit, the most economical location to produce the item is **China**, with a total cost (labor and transportation) per unit of **$1.65**.Note: All

Given data Total labor costs =5×3.50=17.5 Total shipping cost =40×1.75=70 Total labor cost and…

Answered: In Myanmar, five laborers, each making…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

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

See similar textbooks

Similar questions

Golf World, Incorporated (GWI) sells products and services for the sport of golf. One of its key business units specializes in the repair and reconditioning of golf carts. GWI enters into contracts with a number of golf clubs throughout the U.S. in which the clubs send their carts to GWI for a complete reconditioning: motor, frame repair where necessary, and replacement of seat covers and canvas tops. The clubs usually will cycle 10–15% of their carts through this process each year. Because GWI's business has been growing steadily, it is very important to complete the reconditioning of the carts within a budgeted time and cost. The firm uses weighted-average process costing to keep track of the costs incurred in the reconditioning process. GWI's golf cart repair and reconditioning unit has the following information for the month of November, in which 1,200 carts were started for reconditioning: Beginning WIP: 150 units, 50% complete for materials ($16,600) and 30% complete for…
The Winston Company has four distribution centers (A, B, C, and D) that require 40,000, 60,000, 30,000, and 50,000 gallons of de-ionized water, respectively, per month for cleaning their long-haul trucks. Three de-ionized water wholesalers (1, 2, and 3) indicated their willingness to supply as many as 50,000, 70,000, and 60,000 gallons, respectively. The total cost (shipping plus price) of delivering 1,000 gallons of de-ionized water from each wholesaler to each distribution center is shown in the following table: Distribution Center Wholesaler A B 1 $1.70 $1.90 $1.60 $1.70 2 $1.40 $1.90 $1.60 $1.70 3 $1.60 $1.50 $1.80 $1.40 a. Which of the following statements regarding setting up the tableau for the optimal solution for this problem is true? O A. The sum of supply capacities is greater than the sum of demands, so a dummy distribution center needed, O B. The sum of supply capacities is less than the sum of demands, so a dummy wholesaler is needed. C. The sum of supply capacities…
The Winston Company has four distribution centers (A, B, C, and D) that require 40,000, 60,000, 30,000, and 50,000 gallons of de-ionized water, respectively, per month for cleaning their long-haul trucks. Three de-ionized water wholesalers (1, 2, and 3) indicated their willingness to supply as many as 50,000, 70,000, and 60,000 gallons, respectively. The total cost (shipping plus price) of delivering 1,000 gallons of de-ionized water from each wholesaler to each distribution center is shown in the following table: Distribution Center Wholesaler A B D $1.90 $1.90 $1.70 $1.60 $1.70 2 $1.40 $1.60 $1.70 3 $1.60 $1.50 $1.80 $1.40 a. Which of the following statements regarding setting up the tableau for the optimal solution for this problem is true? O A. The sum of supply capacities is greater than the sum of demands, so a dummy distribution center is needed. O B. The sum of supply capacities is less than the sum of demands, so a dummy wholesaler is needed. O C. The sum of supply capacities…
2.) Your business provides technical support for very complex and specialized machinery used by companies throughout the country, and you currently have support centers at 5 locations. However, due to a poor market, you have been forced to close your centers in Houston and San Diego. You will have to relocate all of your technicians in these two centers to your other three centers in Cleveland, Seattle, and Charlotte. Due to the varying costs of living in each city, and travel and retraining times, the cost for relocating an employee varies depending on where the employee is moving. These costs are given in the following table: To: From: Cleveland Seattle Charlotte $5,000 | $7,000 $7,000 $4,000 $6,000 $8,000 Houston San Diego You currently have 40 employees in Houston and 55 employees in San Diego, which all need to be relocated. Cleveland is able to take in at most 35 relocated employees, Seattle can take in at most 32 employees, and Charlotte is able to take in at most 50 employees.…
Waikato Farm Machinery Ltd (‘WFML’), is a well- established business, with the main base of its operations in Te Rapa, Hamilton. Its business is the importation and distribution of farm machinery such as tractors, loaders, diggers, bulldozers as well as farming equipment such as disc ploughs, rotovators, grain silos including machinery used by dairy farmers in milking sheds. The imported equipment is then sold at wholesale prices to smaller businesses in other centres in the Waikato and King Country regions, that on sell them to farmers. WFML has developed a formidable reputation as a supplier of such goods for at least two reasons. First, it imports machinery and equipment of the highest quality such as John Deere tractors from the United States and International Harvester tractors from Germany. Secondly, it has consistently stood by the goods it sells and efficiently attends to any difficulties experienced by retailers such as the repair of any defects. More importantly it is able to…
Please solve this Optimization problem using VAM method manually

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS