A company specialising in producing industrial chemicals, sells its products to some major markets in the...

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A company specialising in producing industrial chemicals, sells its products to some major markets in the Middle East and North Africa (MENA) region. In order to ensure that demand for its products are met, a Supply Chain Analyst for the firm has been tasks with modelling two scenarios. Scenario 1 is to build a production plant in each of the main regional markets. As this scenario would lower the cost of transportation and any taxation due to imports into that market. Scenario 2 is to consolidate plants in just a few regions and supply to the different markets. i. ii. Following the network optimization modelling undertaken by the Supply Chain Analyst, what should be his advice to the firm in terms of the choosing the lowest-cost network design between the two scenarios given the information presented in the table below? How would the cost of the network change if the executives of the firm insist that a plant must be built in Jordan and Oman for some strategic reasons? Table 1: Paint Producer Supply Chain Data Denand Regi on Fixed Low Fixed High Supply Regi on Production and Transportation Cost [$1000] per 1,000,000 Units Onan UAE Bahrain Jordan Tuni si a Egypt [$] Oran 113 129 218 141 182 161 8000 15 UAE 164 108 165 151 137 140 6500 Bahrain 193 210 119 151 99 124 6240 Jordan 143 147 200 133 167 155 7500 Tuni si a 161 175 99 126 83 104 5200 Egypt 199 140 176 144 147 99 6000 55555 Costs Capacity Costs Capacity Plant [$] 10000 7500 Plant 6600 8600 6200 5500 333333 30 30 30 30 30 Denand [million] 17 11 27 20 22 10 A company specialising in producing industrial chemicals, sells its products to some major markets in the Middle East and North Africa (MENA) region. In order to ensure that demand for its products are met, a Supply Chain Analyst for the firm has been tasks with modelling two scenarios. Scenario 1 is to build a production plant in each of the main regional markets. As this scenario would lower the cost of transportation and any taxation due to imports into that market. Scenario 2 is to consolidate plants in just a few regions and supply to the different markets. i. ii. Following the network optimization modelling undertaken by the Supply Chain Analyst, what should be his advice to the firm in terms of the choosing the lowest-cost network design between the two scenarios given the information presented in the table below? How would the cost of the network change if the executives of the firm insist that a plant must be built in Jordan and Oman for some strategic reasons? Table 1: Paint Producer Supply Chain Data Denand Regi on Fixed Low Fixed High Supply Regi on Production and Transportation Cost [$1000] per 1,000,000 Units Onan UAE Bahrain Jordan Tuni si a Egypt [$] Oran 113 129 218 141 182 161 8000 15 UAE 164 108 165 151 137 140 6500 Bahrain 193 210 119 151 99 124 6240 Jordan 143 147 200 133 167 155 7500 Tuni si a 161 175 99 126 83 104 5200 Egypt 199 140 176 144 147 99 6000 55555 Costs Capacity Costs Capacity Plant [$] 10000 7500 Plant 6600 8600 6200 5500 333333 30 30 30 30 30 Denand [million] 17 11 27 20 22 10

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i To advise the firm on the lowestcost network design between the two scenarios the Supply Chain Ana... View the full answer