TelecomOne has manufacturing plants located in Baltimore, Memphis, and Wichita and serves markets in Atlanta, Boston, and Chicago. HighOptic serves markets in Denver, Omaha, and Portland from plants located in Cheyenne and Salt Lake 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 1,940 970 100 495 1,200 1,925 2,400 1,425 500 950 800 380 1,355 543 1,045 665 2,321 1,646 700 508 311 14 6 7 922 1,797 10 8 11 Monthly Monthly capacity fixed costs (SK) (K units) 24 27 22 31 7,650 3,500 5,000 4,100 2,200 Managers in both companies must decide how to allocate demand to production facilities as demand and costs change.
TelecomOne has manufacturing plants located in Baltimore, Memphis, and Wichita and serves markets in Atlanta, Boston, and Chicago. HighOptic serves markets in Denver, Omaha, and Portland from plants located in Cheyenne and Salt Lake 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 1,940 970 100 495 1,200 1,925 2,400 1,425 500 950 800 380 1,355 543 1,045 665 2,321 1,646 700 508 311 14 6 7 922 1,797 10 8 11 Monthly Monthly capacity fixed costs (SK) (K units) 24 27 22 31 7,650 3,500 5,000 4,100 2,200 Managers in both companies must decide how to allocate demand to production facilities as demand and costs change.
Chapter14: Marketing Channels And Supply Chain Management
Section14.1: Taza Cultivates Channel Relationships With Chocolate
Problem 1VC
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