Operation management An international company in healthcare industry is currently serving the European market from three existing factories inDusseldorf, Amsterdam, and The Hauge. Due to the huge growth in demand in recent years and analyzing the marketgrowth in next years, the leadership team of the company is willing to add an additional plant in Geneva or Budapest.One of the main criteria for this decision is the transportation cost. The following Table shows the transportation cost perunit product from factories to the consumer markets in Brussels, Paris, Lisbon, and Zurich.FromToBrussel LisbonSAmsterdam 20Dusseldorf 17The Hauge21Budapest 37Geneva22Demand350Show Transcribed Text2527202830450Paris2225221921850Rome2930302518600Vienna2419163027450Zurich1915231421300Supplycapacity1100850550500500a) The company should establish the new factory in Budapest or Geneva? Why?(b) Due to new forecast updates, company expects 20% lower total demand. Will the result of part (a) be different?

Answered: Image /qna-images/answer/be9351a4-6212-4f92-a710-daf491859e23.jpg

Answered: An international company in healthcare…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Explain why do the authors mean when they talk about the idea that logistics is boundary spanning ?
a) Use the Northwest Corner Rule to develop an initial solution. b) Apply the Stepping-Stone Method to find the minimum transportation cost. c) Calculate the total cost for this situation.
Evaluate the critical factors in route design for international shipments
Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment, and insurance) and average variable costs per shipment (labor, transportation, and utilities) are listed in the following table. Sales projections range from 550,000 to 600,000 shipments per year. Location Annual fixed cost Variable Costs per Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest overall costs? Thank you!!!
Williams Auto Top Carriers currently maintains plants in Atlanta and Tulsa to supply auto top carriers to distribution centers in Los Angeles and New York. Because of expanding demand, Williams has decided to open a third plant and has narrowed the choice to one ot two cities – New Orleans and Houston. Table below provides pertinent production and distribution costs as well as plant capacities and distribution demands. Which of the new locations, in combination with the existing plants and distribution centers, yields a lower cost for the firm? From Plants To Distribution centers Normal production Unit production cost Los Angeles New York Existing plants Atlanta Tulsa $8 $4 $5 $7 600 900 $6 $5 Proposed locations New Orleans Houston $5 $4 $6 $6a 500 500 $4 (anticipated) $3 (anticipated) Forecast demand 800 1,200 2,000 a – Indicates distribution cost (shipping, handling, storage) will be $6 per…
DM Office Products (DMOP) is a wholesale supplier of office products with one facility in Pennsylvania. It has decided to build a new distribution warehouse in the state of New York to help serve the growing demand in that market. It has four major customers located in Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, it also has the greatest competition, and DMOP is not a major player there. When DMOP ships an order to a customer, it uses its own small fleet of two trucks to deliver, so the cost of delivery is essentially the same for a full or partially full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table. CITY x-COORDINATES y-COORDINATES NUMBER OF SHIPMENTS Buffalo 340 865 85 Syracuse 1,435 915 89 Albany 2,315 645 129 New York City 2,290 45 69
Logistics and Supply Chain Management 2 Case Study Topic: Centralized distribution at Nike. Nike has a central customer service center (distribution center) located at Laakdal in Belgium. The center is 200,000 square meters in size and serves 45,000 customers in EMEA (Europe, Middle East and Northern Africa) with footwear, apparel and equipment. The center receives products from supplier factories around the world for distribution to retail clients both before the start of all four seasons each year, as well as during the season. Prior to the start of a season, when work is at a peak, the workforce stands at some 2,300 operational staff. Off peak, that drops to 1,350 staff. Deliveries are very time critical, given the seasonal nature of the business. Retailers demand in store availability on day one of a new season. The center is a clear example of a company deciding to centralize receiving, storage and shipment to customers at one location in Europe. The beneﬁts including…
A company has a contract to move 700 units of a product per day between three plants A, B, and C, and three destinations, X, Y, and Z. Cost (in hundreds of pesos) and volume information are given below. Compute the optimal transportation cost.
How to Compare the function of distribution Center to cross dock operation and example it?
Why are most location decisions analyzed by a team of managers instead of a single person? What types of teams are suggested as being helpful to the task of logistics network redesign?
Near which map coordinates should the hub be located?
DM Office Products (DMOP) Is a wholesale supplier of office products with one facility in Pennsylvania. It has decided to bulld a new distribution warehouse in the state of New York to help serve the growing demand In that market. It has four major customers located In Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, it also has the greatest competition, and DMOP Is not a major player there. When DMOP ships an order to a customer, It uses its own small fleet of two trucks to deliver, so the cost of delivery Is essentially the same for a full or partlally full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table. x-COORDINATES 340 y-COORDINATES 865 CITY NUMBER OF SHIPMENTS Buffalo 85 Syracuse Albany New York City 1,435 2,315 2,290 915 89 645 129 45 69 Use the centroid method to recommend a location for the new warehouse for DMC (Round your answers to 1 decimal place.) Cx…

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS