Question: Write down a statement of purpose for this case study.

Note: The statement of purpose should include: The key to writing a good statement of purpose is making clear what the situation is that the firm is confronting (e.g. threat to profitability, market share, etc.) and how a failure to consider your recommendation could have deleterious consequences for the firm (e.g. further erosion of profitability due to cost escalation, market share shrinkage due to competitor encroachment, etc.)

Case Study 3: Designing the Production Network at CoolWipes CoolWipes was founded in the late 1980s and produced baby wipes and diaper ointment. Demand for the two products was as shown in Table 5-18. The company currently had one factory in Chicago that produced both products for the entire country. The wipes line in the Chicago facility had a capacity of 5 million units, an annualized fixed cost of $5 million a year, and a variable cost of $10 per unit. The ointment line in the Chicago facility had a capacity of 1 million units, an annualized fixed cost of $1.5 million a year, and a variable cost of $20 per unit. The current transportation costs per unit (for both wipes and ointment) are shown in Table 5-19. New Network Options Matt had identified Princeton, New Jersey; Atlanta; and Los Angeles as potential sites for new plants. Each new plant could have a wipes line, an ointment line, or both. A new wipes line had a capacity of 2 million units, an annual fixed cost of $2.2 million, and a variable production cost of $10 per unit. A new ointment line had a capacity of 1 million units, an annual fixed cost of $1.5 million, and a variable cost of $20 per unit. The current transportation costs per unit are shown in Table 5-19. Matt had to decide whether to build a new plant and if so, which production lines to put into the new plant