LenQua group is a drinking water factory in Serang. As the business progresses, demand is increasing in Cirebon, Semarang and Surabaya. And the company owner plans to build a factory so that customer needs in the area can be met without have to send from the factory in Serang. Several considerations for decision making can be seen based on the data below:   a. How many boxes for the annual sales volume of each area to be able to compete competitive advantage strategy with competitors? b. What do you suggest to the company based on the above cost data for the building site the factory? Explain why and use the computation data to make decisions possible according to the corporate strategy you have learned.

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...
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LenQua group is a drinking water factory in Serang. As the business progresses, demand is increasing in Cirebon, Semarang and Surabaya. And the company owner plans to build a factory so that customer needs in the area can be met without have to send from the factory in Serang. Several considerations for decision making can be seen based on the data below:

 

a. How many boxes for the annual sales volume of each area to be able to compete
competitive advantage strategy with competitors?
b. What do you suggest to the company based on the above cost data for the building site
the factory? Explain why and use the computation data to make decisions possible
according to the corporate strategy you have learned.

Cost/Box
Location Fixed Cost Material Labor
Cirebon
Overhead
200.000
0.10
0.40
0.6
Semarang 180.000
0.25
0.75
0.50
Surabaya 170.000
0.6
1.00
1.00
Transcribed Image Text:Cost/Box Location Fixed Cost Material Labor Cirebon Overhead 200.000 0.10 0.40 0.6 Semarang 180.000 0.25 0.75 0.50 Surabaya 170.000 0.6 1.00 1.00
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