Question: Question 3 (20 marks) PepsiCo is contemplating locating its state-of-the-art factory in any of these three sites Durban (A), Bulawayo (B) and Gaborone (C). The

Question 3 (20 marks) PepsiCo is contemplating locating its state-of-the-art factory in any of these three sites Durban (A), Bulawayo (B) and Gaborone (C). The goal is to locate the factory at a minimum cost site, where cost is measured by annual fixed plus variable costs of production. The following information has been presented to you, PepsiCo knows that it will produce between 0 and 60000 units at the new plant each year, but this is the available knowledge regarding its production plans thus far. Provide advice using a relevant diagram on what values of volume of production if any is site C a recommended site? What volume indicates site A is optimal and over what range of volume is site B optimal and why. (Show all necessary calculations in your report)
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