Applichem

Applichem - The Transportation Problem

Product Made and Shipped During Past Year (in 100,000 lb units)
Plant/Country
Mexico City
Windsor, Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan
Total

Mexico

Canada

3.0

Venezuela

Europe

United
States

6.3

Japan

Total

7.9

17.2
2.6
4.1
38.0
14.0
4.0

2.6

3.0

2.6

4.1
5.6

20.0

12.4
14.0

16.0

20.0

26.4

4.0
11.9
79.9

Plant Production Costs and Capacity

Mexico City
Windsor, Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan

Plant
Production
Capacity
Cost (per
(100,000
1,000 lbs.)
lb units)
95.01
22.0
97.35
3.7
116.34
4.5
76.69
47.0
102.93
18.5
153.80
5.0
100.7

Transportation Cost (per 1,000 lbs), Import Duties and Demands for ReleaseUnited
Plant/Country Mexico
Canada Venezuela Europe
States
0.00
11.40
7.00
11.00
11.00
Mexico City
11.00
0.00
9.00
11.50
6.00
Windsor, Ontario
7.00
10.00
0.00
13.00
10.40
Caracas, Venezuela
10.00
11.50
12.50
0.00
11.20
Frankfort, Germany
10.00
6.00
11.00
10.00
0.00
Gary, Indiana
14.00
13.00
12.50
14.20
13.00
Osaka, Japan
Total Demand
Import Duty

3.00
0.0%

2.60
0.0%

16.00
50.0%

20.00
9.5%

26.40
4.5%

Japan
14.00
13.00
14.30
13.30
12.50
0.00
11.90
6.0%

79.9

Applichem
Base Costs
Mexico City
Windsor, Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan
Total Demand

$0.00
11.00
7.00
10.00
10.00
14.00
3.0

$11.40
0.00
10.00
11.50
6.00
13.00
2.6

$7.00
9.00
0.00
12.50
11.00
12.50
16.0

$11.00
11.50
13.00
0.00
10.00
14.20
20.0

United
States
$11.00
6.00
10.40
11.20
0.00
13.00
26.4

Production Costs
Import Duty

$95.01
0.0%

$97.35
0.0%

$116.34
50.0%

$76.69
9.5%

$102.93
4.5%

Plant/Country

Mexico

Canada

Venezuela

Europe

Japan
$14.00
13.00
14.30
13.30
12.50
0.00
11.9

Plant
Capacity
22.0
3.7
4.5
47.0
18.5
5.0

$153.80
6.0%

Combined Costs
Plant/Country
Mexico City
Windsor, Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan

Candidate
Solution
Mexico City
Windsor Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan
Requirements

Cost
Calculations
Mexico City
Windsor, Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan

Mexico
$95.01
108.35
123.34
86.69
86.69
167.80

Mexico

Canada
$106.41
97.35
126.34
88.19
108.93
166.80

Canada

3.0

Venezuela
$153.02
155.03
116.34
133.79
170.90
249.45

Venezuela

Europe
$116.08
118.10
141.63
76.69
123.66
183.96

Europe

United
States
$110.78
107.73
132.44
91.85
102.93
174.31

United
States

6.3

Japan
$115.55
116.19
138.48
95.39
94.54
153.80

Japan
7.9

2.6
4.1
5.6

20.0

12.4
14.0
26.4

3.0

2.6

16.0

20.0

Mexico

Canada

Venezuela

Europe

$285.03
0.00
0.00
0.00
0.00
0.00

$0.00
253.11
0.00
0.00
0.00
0.00

$963.99
0.00
476.99
749.20
0.00
0.00

$0.00
0.00
0.00
1,533.80
0.00
0.00

United
States
$0.00
0.00
0.00
1,138.88
1,441.02
0.00

4.0
11.9

Japan
$912.85
0.00
0.00
0.00
0.00
615.20
$8,370.07

Total
Shipped
17.2
2.6
4.1
38.0
14.0
4.0
79.9

Base Costs
Mexico City
Windsor, Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan
Total Demand

$0.00
11.00
7.00
10.00
10.00
14.00
3.0

$11.40
0.00
10.00
11.50
6.00
13.00
2.6

$7.00
9.00
0.00
12.50
11.00
12.50
16.0

$11.00
11.50
13.00
0.00
10.00
14.20
20.0

United
States
$11.00
6.00
10.40
11.20
0.00
13.00
26.4

Production Costs
Import Duty

$95.01
0.0%

$97.35
0.0%

$116.34
50.0%

$76.69
9.5%

$102.93
4.5%

Plant/Country

Mexico

Canada

Venezuela

Europe

Japan
$14.00
13.00
14.30
13.30
12.50
0.00
11.9

Plant
Capacity
22.0
3.7
4.5
47.0
18.5
5.0

$153.80
6.0%

Combined Costs
Plant/Country
Mexico City
Windsor, Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan

Candidate
Solution
Mexico City
Windsor Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan
Requirements

Cost
Calculations
Mexico City
Windsor, Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan

Mexico
$95.01
108.35
123.34
86.69
112.93
167.80

Canada
$106.41
97.35
126.34
88.19
108.93
166.80

Venezuela
$153.02
155.03
116.34
133.79
170.90
249.45

Europe
$116.08
118.10
141.63
76.69
123.66
183.96

Mexico

Canada

Venezuela

Europe

3.0
0.0
0.0
0.0
0.0
0.0
3.0

0.0
2.6
0.0
0.0
0.0
0.0
2.6

0.0
0.0
4.5
11.5
0.0
0.0
16.0

0.0
0.0
0.0
20.0
0.0
0.0
20.0

Mexico

Canada

Venezuela

Europe

$285.03
0.00
0.00
0.00
0.00
0.00

$0.00
253.11
0.00
0.00
0.00
0.00

$0.00
0.00
523.53
1,538.53
0.00
0.00

$0.00
0.00
0.00
1,533.80
0.00
0.00

United
States
$110.78
107.73
132.44
91.85
102.93
174.31

United
States
3.2
1.1
0.0
3.6
18.5
0.0
26.4

United
States
$354.50
118.50
0.00
330.64
1,904.20
0.00

Japan
$115.55
116.19
138.48
95.39
122.36
153.80

Japan
0.0
0.0
0.0
11.9
0.0
0.0
11.9

Japan
$0.00
0.00
0.00
1,135.13
0.00
0.00
$7,976.98

Total
Shipped
6.2
3.7
4.5
47.0
18.5
0.0

Idle
Capacity
15.8
0.0
0.0
0.0
0.0
5.0