A small medical supply company in Australia has just developed a never-before-seen product with major pre-release orders
Question:
a. Solution #1: Estimated cost of $375 million with a new large plant in China to supplement their existing plant in Australia.
b. Solution #2: Estimated cost of $385 million with three new smaller plants in China, Brazil, and Italy to supplement their plant in Australia. These plants would service their local regions.
(Assume the costs listed here include all the costs that are relevant.) What would be the best reasons for picking Solution #1? For picking Solution #2? Why is it important for this firm to consider other nonquantifiable factors when determining their best course of action for expansion?
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Related Book For
Supply Chain Network Design Applying Optimization and Analytics to the Global Supply Chain
ISBN: 978-0133017373
1st edition
Authors: Michael Watson, Sara Lewis, Peter Cacioppi, Jay Jayaraman
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