Tygrim Farms, Inc, the biggest producer of chicken wings in the area wants to expand by...
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Tygrim Farms, Inc, the biggest producer of chicken wings in the area wants to expand by building up to two new chicken farms. They are considering four locations: San Jose, Phoenix, Chicago and Tallahassee. Each farm would be able to ship 18,000 cases of chicken wings per week. The fixed cost associated with the farms to get them up and running is $400,000 for San Jose, $350,000 for Phoenix, $420,000 for Chicago and $320,000 for Tallahassee. There are three distributors that buy Tygrim's chicken wings and then sell them throughout the country. Distributor 1 demands 7.500 cases of chicken wings per week, Distributor 2 needs 7,200 cases of chicken wings per week and Distributor 3 demands 7,000 cases of chicken wings per week. The costs such as the production and shipping costs associated with one case of chicken wings from the farm to the corresponding region are given in the data section. The producer wants to conduct operations at minimum cost but has the following limitations: 1. If the San Jose farm is operational then the Chicago farm has to be operational as well 2. At most two farms can be operational 3. Either Chicago or Tallahassee should be operational Tygrim Farms, Inc, the biggest producer of chicken wings in the area wants to expand by building up to two new chicken farms. They are considering four locations: San Jose, Phoenix, Chicago and Tallahassee. Each farm would be able to ship 18,000 cases of chicken wings per week. The fixed cost associated with the farms to get them up and running is $400,000 for San Jose, $350,000 for Phoenix, $420,000 for Chicago and $320,000 for Tallahassee. There are three distributors that buy Tygrim's chicken wings and then sell them throughout the country. Distributor 1 demands 7.500 cases of chicken wings per week, Distributor 2 needs 7,200 cases of chicken wings per week and Distributor 3 demands 7,000 cases of chicken wings per week. The costs such as the production and shipping costs associated with one case of chicken wings from the farm to the corresponding region are given in the data section. The producer wants to conduct operations at minimum cost but has the following limitations: 1. If the San Jose farm is operational then the Chicago farm has to be operational as well 2. At most two farms can be operational 3. Either Chicago or Tallahassee should be operational
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To determine the optimal locations for the new chicken farms while minimizing costs and meeting the given limitations we can analyze the costs associated with each location and the demands of the dist... View the full answer
Related Book For
Entrepreneurship Successfully Launching New Ventures
ISBN: 9780132555524
4th Edition
Authors: Bruce R. Barringer, R. Duane Ireland
Posted Date:
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