Question: please answer question A and B as directed. U V WUTUS 4. [30 points) Show your work to earn full credit. Dryice, Inc., is a

please answer question A and B as directed. U V
please answer question A and B as directed. U V
please answer question A and B as directed.
U V WUTUS 4. [30 points) Show your work to earn full credit. Dryice, Inc., is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to be 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 units in the West. Managers at Dryice are designing the manufacturing network and have selected four potential sites -- New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in the following table, along with the cost of producing and shipping an air conditioner to each of the four markets. a. Where should Dryice build its factories and how large should they be? How much should be shipped from each factory to each demand region? (Hint: use the Excel template of capacitated plant location model) b. Dryice decided to allocate plants to demand regions (instead of using plant-location method). If a plant is allocated to a demand region, then the plant will produce the demand quantity of the region(s) allocated which is subject to the capacity of the plant. For example, if New York low capacity plant is allocated to supply to East region, then it will produce the demand of east region: 111,000 units and the excess capacity of the New York plant will be 90,000 units (Capacity - Production - 200,000 - 111,000 = 90,000). Which plants (location and capacity) should be kept open? Which plant should be allocated to which demand region? (Hint: use the Excel template of plant location with single source modell Production and Transport Costs for Dryice, Inc. New York Atlanta Chicago San Diego $5.75 million $5 million $5.9 million $6.2 million Annual fixed cost of 200,000 plant Annual fixed cost of 400,000 plant $9.5 million $9.2 million $9.7 million $10.4 million $299 East $211 $232 $255 South $242 $212 $255 $280 Midwest $235 $215 $240 $240 $300 West $280 $255 $225

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