Appendix A - Reliability Data Design Prototype for "Fidget-Widget 1.0" Spinner Part 1 P = 0.8 Casing P = 0.98 Spinner Part 2 P = 0.89 Wheel P = 0.96 Specification Data for the Fidget-Widget Parameter Desired width of Spinner Part 2 Customer return threshold Cost of a customer return Cost to resolve defects when found Result 0.250 inches 0.05 inches $12.00 $3.00 Distribution and Sales information for the Fidget-Widget City Toronto Montreal Vancouver Ottawa Online Sales (Throughout Canada) Expected Year 1 Sales 2200 1400 900 850 1200 Your logistics analyst has reviewed many distribution centers and provided you with three sites that will be able to meet your service and cost expectations. She has asked you which of these you recommend. Potential sites for Distribution Center Location Mississauga Winnipeg Cornwall x-coordinate 79.64W 97.14W 74.73W y-coordinate 43.59N 49.90N 45.02N Your operations analyst has reached out to several contract manufacturers as well as analyzed the expected costs of launching an in-house manufacturing site. She has provided the following information to help you decide on a sourcing strategy. As a new start-up, you'd like to focus on minimizing your total Year 1 production costs. Sourcing Cost Analysis Fixed Costs (Launch, Contract) Variable Costs (per unit produced) In-House Facility $47,000 Lowest-Cost Outsourcing Site $2,500 $8.50 $11.50