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The AC company decides to open a new factory to satisfy increasing demand. They already have four plants, (A, B, C and D) and want to open a new one in site E or F. 4 B C D Factory Wharehouse W1 W2 W3 The capacity of the new plant is going to be 40.000 units The company distributes to the following wharehouses: Expected Annual Demand Capacity A 3 C D E = 20,000 50,000 35,000 70,000 80,000 50,000 70,000 The Logistics department compiled the following cost table specifying the cost per unit to ship the product from each plant to each warehouse: Plant Warehouse W2 2 4 4 1 2 3 W1 1 1 2 5 1 5 Evaluate wich site E or F is more convenient. W3 2 1 5 2 3 4

The AC company decides to open a new factory to satisfy increasing demand. They already have four plants, (A, B, C and D) and want to open a new one in site E or F. 4 B C D Factory Wharehouse W1 W2 W3 The capacity of the new plant is going to be 40.000 units The company distributes to the following wharehouses: Expected Annual Demand Capacity A 3 C D E = 20,000 50,000 35,000 70,000 80,000 50,000 70,000 The Logistics department compiled the following cost table specifying the cost per unit to ship the product from each plant to each warehouse: Plant Warehouse W2 2 4 4 1 2 3 W1 1 1 2 5 1 5 Evaluate wich site E or F is more convenient. W3 2 1 5 2 3 4

Practical Management Science
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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The AC company decides to open a new factory to satisfy increasing demand. They already have four plants, (A, B, C and D) and want to open a new one in site E or F. A B C D Factory The capacity of the new plant is going to be 40.000 units W1 W2 W3 The company distributes to the following wharehouses: Expected Annual Demand A B C D Capacity Wharehouse E F 20,000 50,000 35,000 70,000 The Logistics department compiled the following cost table specifying the cost per unit to ship the product from each plant to each warehouse: Plant Warehouse W2 2 4 4 1 2 3 80,000 50,000 70,000 W1 1 1 2 5 1 5 Evaluate wich site E or F is more convenient. W3 2 1 5 2 3 4
Transcribed Image Text:The AC company decides to open a new factory to satisfy increasing demand. They already have four plants, (A, B, C and D) and want to open a new one in site E or F. A B C D Factory The capacity of the new plant is going to be 40.000 units W1 W2 W3 The company distributes to the following wharehouses: Expected Annual Demand A B C D Capacity Wharehouse E F 20,000 50,000 35,000 70,000 The Logistics department compiled the following cost table specifying the cost per unit to ship the product from each plant to each warehouse: Plant Warehouse W2 2 4 4 1 2 3 80,000 50,000 70,000 W1 1 1 2 5 1 5 Evaluate wich site E or F is more convenient. W3 2 1 5 2 3 4
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