Question: Refer to - https://www.chegg.com/homework-help/Supply-Chain-Management-7th-edition-chapter-5-problem-1CS-solution-9780134731889 Question 1 - What is annual cost serving the entire nation from from Chicago? My answer is $32,661,400 with calculations below
Refer to - https://www.chegg.com/homework-help/Supply-Chain-Management-7th-edition-chapter-5-problem-1CS-solution-9780134731889
Question 1 - What is annual cost serving the entire nation from from Chicago?
My answer is $32,661,400 with calculations below and link above do not align, where am i going wrong?
| Plant Costs and Capacity | ||||||||
| Wipes | Ointment | |||||||
| Plant | Fixed Cost | Variable Cost/unit | Capacity | Fixed Cost | Variable Cost/unit | Capacity | ||
| Chicago | $5,000,000 | $10 | 5000000 | $1,500,000 | $20 | 1000000 | ||
| Princeton, NJ | $2,200,000 | $10 | 2000000 | $1,500,000 | $20 | 1000000 | ||
| Atlanta | $2,200,000 | $10 | 2000000 | $1,500,000 | $20 | 1000000 | ||
| LA | $2,200,000 | $10 | 2000000 | $1,500,000 | $20 | 1000000 | ||
| Regional Demand by Product | ||||||||
| Zone | Northwest | southwest | Upper midwest | lower midwest | northeast | southeast | Total | |
| Wipes | 500000 | 700000 | 900000 | 800000 | 1000000 | 600000 | 4500000 | |
| Ointment | 50000 | 90000 | 120000 | 65000 | 120000 | 70000 | 515000 | |
| Transportation Costs | ||||||||
| Northwest | southwest | Upper midwest | lower midwest | northeast | southeast | Transport cost Multiplier | ||
| Chicago | 6.32 | 6.32 | 3.68 | 4.04 | 5.76 | 5.96 | 1 | |
| Princeton, NJ | 6.60 | 6.60 | 5.76 | 5.92 | 3.68 | 4.08 | ||
| Atlanta | 6.72 | 6.48 | 5.92 | 4.08 | 4.04 | 3.64 | ||
| LA | 4.36 | 3.68 | 6.32 | 6.32 | 6.72 | 6.60 | ||
| Wipes Variables | ||||||||
| Northwest | southwest | Upper midwest | lower midwest | northeast | southeast | Fixed | Capacity | |
| Chicago | 500000 | 700000 | 900000 | 800000 | 1000000 | 600000 | 1 | 500000 |
| Ointment Variables | ||||||||
| Northwest | southwest | Upper midwest | lower midwest | northeast | southeast | Fixed | Capacity | |
| Chicago | 50000 | 90000 | 120000 | 65000 | 120000 | 70000 | 1 | 485000 |
| Total Cost | $32,661,400.00 | |||||||
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
