If you are working for a firm that ships with multi-stop truckloads, why might a cost of $0.22 per ton-mile be a good estimate? Assuming that it is a good estimate, why would you want to pick a slightly higher number, or a slightly lower number?
Answer to relevant QuestionsYou are working for a firm that makes a special type of fertilizer that is sold in bags. They sell millions of these bags a year. Because of the accounting system, they claim that their fixed costs go up $100 for every ...You have completed a study and have found that you can save $7.5 million in the first year after closing two warehouses, opening a new plant, and serving your customers from different facilities. This study was done with one ...Based on the results seen previously in this chapter, as well as your running of these scenarios on your own through the model and PowerPoint referenced previously, review the new locations selected as the model solves for ...Assume that the CEO is not sure whether all product will come from China or not but is sure that all plants will not make all products. What is your recommendation to the CEO for the location of the best three warehouses? ...Let’s revisit the case study from Chapter 10, “Adding Multiple Products and Multisite Production Sourcing,” for Value Grocers—the grocery retailer that operated a network of stores in the Midwest region. If you were ...
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