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Management executives at both TelecomOne and HighOptic have decided to merge the two companies into a single entity to be called TelecomOptic. Management believes that significant benefits will result if the two networks are merged appropriately. TelecomOptic will have five factories from which to serve six markets. Management is debating whether all five factories are needed. It has assigned a supply chain team to study the network for the combined company and identify the plants that could be shut down.

Management executives at both TelecomOne and HighOptic have decided to merge the two companies into a single entity to be called TelecomOptic. Management believes that significant benefits will result if the two networks are merged appropriately. TelecomOptic will have five factories from which to serve six markets. Management is debating whether all five factories are needed. It has assigned a supply chain team to study the network for the combined company and identify the plants that could be shut down.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Management executives at both TelecomOne and HighOptic have decided to merge the two companies into a single entity to be called TelecomOptic. Management believes that significant benefits will result if the two networks are merged appropriately. TelecomOptic will have five factories from which to serve six markets. Management is debating whether all five factories are needed. It has assigned a supply chain team to study the network for the combined company and identify the plants that could be shut down.
Transcribed Image Text:Management executives at both TelecomOne and HighOptic have decided to merge the two companies into a single entity to be called TelecomOptic. Management believes that significant benefits will result if the two networks are merged appropriately. TelecomOptic will have five factories from which to serve six markets. Management is debating whether all five factories are needed. It has assigned a supply chain team to study the network for the combined company and identify the plants that could be shut down.
City. Supply city Baltimore Cheyenne Salt Lake City Memphis Wichita Monthly demand (K units) Demand city Production & Transportation Cost (SK/ K units) Atlanta Boston Chicago Denver Omaha Portland 1,675 400 685 1,630 1,160 2,800 18 1,460 100 495 24 1,940 970 2,400 1,425 500 950 1,925 27 380 1,355 543 1,045 665 22 922 1,646 700 508 311 31 10 8 14 6 7 1,200 800 2,321 1,797 11 Monthly Monthly capacity fixed costs (SK) (K units) 7,650 3,500 5,000 4,100 2,200
Transcribed Image Text:City. Supply city Baltimore Cheyenne Salt Lake City Memphis Wichita Monthly demand (K units) Demand city Production & Transportation Cost (SK/ K units) Atlanta Boston Chicago Denver Omaha Portland 1,675 400 685 1,630 1,160 2,800 18 1,460 100 495 24 1,940 970 2,400 1,425 500 950 1,925 27 380 1,355 543 1,045 665 22 922 1,646 700 508 311 31 10 8 14 6 7 1,200 800 2,321 1,797 11 Monthly Monthly capacity fixed costs (SK) (K units) 7,650 3,500 5,000 4,100 2,200
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