SunOil, the vice president of supply chain, decides to view the worldwide demand in terms of five regions-North America, South America, Europe, Africa, and Asia. The data collected are shown in the table. Supply region N. America S. America Europe Asia Africa Demand (M units) Demand region Production & Transportation Cost (SK/ M units) Fixed Low Fixed High costs capacity costs capacity (M units) (SK) (M units) 81 101 N. America S. America Europe Asia Africa (SK) 130 115 6,000 10 9,000 20 6,750 20 119 111 6,500 10 9,750 117 98 100 4,500 10 102 20 115 90 59 74 4,100 10 6,150 105 71 4,000 10 142 103 6,000 12 14 16 7 92 77 105 125 100 8 108 95 The vice president wants to know what the lowest-cost network should look like. 20 20

SunOil, the vice president of supply chain, decides to view the worldwide demand in terms of five regions-North America, South America, Europe, Africa, and Asia. The data collected are shown in the table. Supply region N. America S. America Europe Asia Africa Demand (M units) Demand region Production & Transportation Cost (SK/ M units) Fixed Low Fixed High costs capacity costs capacity (M units) (SK) (M units) 81 101 N. America S. America Europe Asia Africa (SK) 130 115 6,000 10 9,000 20 6,750 20 119 111 6,500 10 9,750 117 98 100 4,500 10 102 20 115 90 59 74 4,100 10 6,150 105 71 4,000 10 142 103 6,000 12 14 16 7 92 77 105 125 100 8 108 95 The vice president wants to know what the lowest-cost network should look like. 20 20

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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