1. How should BioPharma have used its production network in 2013? Should any of the plants have been idled? What is the annual cost of your proposal, including import duties?
2. How should Phil structure his global production network? Assume that the past is a reasonable indicator of the future in terms of exchange rates.
3. Is there any plant for which it may be worth adding a million kilograms of additional capacity at a fixed cost of $3 million per year?
4. How are your recommendations affected by the reduction of duties?
5. The analysis has assumed that each plant has a100 percent yield (percent output of acceptable quality). How would you modify your analysis to account for yield differences across plants?
6. What other factors should be accounted for when making your recommendations?