Tyrell, a manufacturer of pens, has three plastic suppliers worldwide. Their locations and capacities are given below.
Question:
Tyrell, a manufacturer of pens, has three plastic suppliers worldwide. Their locations and capacities are given below. They have located potential sites for manufacturing facilities in China, Philippines, Indonesia, Bangladesh and Cambodia. The capacities and the cost of producing and transporting 1 million pens to each facility from the suppliers is also given below. Given that their primary market is in North America and Europe, they have also located potential warehouse locations in Chicago, Louisville, Alberta, Vancouver, Amsterdam and Cologne. The capacities and transportation costs at each warehouse are given. Management must come up with a plan to decide which facilities are going to be open and how to manage the whole supply chain.
1. Do they have unutilized capacities are our suppliers? How much are they?
2. Which manufacturing facilities are open? List any unused capacities at the manufacturing facilities.
3. Which warehouses are open? List any unused capacities at each warehouse.
4. What is the total cost of this supply chain?
answer in excel
Supplier - Plants: Variable Transportation Costs | ||||||||
Suppliers | Plants Locations (Costs p/million units) | |||||||
China | Phillippines | Indonesia | Bangladesh | Cambodia | Supplier capacity | |||
China | 2.3 | 2.7 | 2.8 | 3 | 2.9 | 60 | ||
India | 2.6 | 2.9 | 2.8 | 2.4 | 2.8 | 70 | ||
Japan | 2.5 | 3.3 | 3.3 | 3.3 | 2.2 | 70 | ||
Factory-Warehouse: Costs of Production & Transportations Costs | ||||||||
Factories | Warehouse Locations (Costs p/million units) | |||||||
Chicago | Louisville | Alberta | Vancouver | Amsterdam | Cologne | fixed cost | factory capacity | |
China | 7 | 7.6 | 6.9 | 6.8 | 7.6 | 7.8 | 350000 | 50 |
Phillippines | 6.4 | 7.7 | 8 | 6 | 7.6 | 6.8 | 450000 | 65 |
Indonesia | 7.8 | 7.1 | 7.8 | 6.9 | 7.2 | 7.8 | 380000 | 50 |
Bangladesh | 6.1 | 7.8 | 6.2 | 7.6 | 6.4 | 7.8 | 290000 | 55 |
Cambodia | 6.8 | 7.1 | 7.2 | 7.3 | 6.8 | 6.9 | 250000 | 45 |
Warehouse-Demand: Locations Warehousing & Transportation Costs | ||||||||
Warehouse | Demand Locations (Costs p/million units) | |||||||
North America | Europe | fixed cost | warehouse capacity | |||||
Chicago | 2.8 | 3.3 | 30000 | 35 | ||||
Louisville | 2.6 | 2.6 | 40000 | 35 | ||||
Alberta | 3 | 2.7 | 35000 | 35 | ||||
Vancouver | 2.4 | 2.9 | 20000 | 35 | ||||
Amsterdam | 2.7 | 2.7 | 38000 | 35 | ||||
Cologne | 2.6 | 3 | 42000 | 35 | ||||
demand | 75 | 105 |